MINI-CASE
The operating income of Carbon Footwear is $10 million.Its net marketing contribution is derived from sales of $80 million and the marketing and sales expenses amount to $15 million.The general and administrative expenses and other operating expenses amount to $20 million.
-Mini-Case Question.If the total sales revenue generated was $100 million,the marketing ROS would be equal to the ________.

Question

Quizplus · Accepted Answer

Marketing ROS (Return on Sales) is calculated by dividing the net marketing contribution by the total sales revenue. 
Net marketing contribution = Sales revenue - Marketing and sales expenses 
Net marketing contribution = $80 million - $15 million = $65 million 
Marketing ROS = Net marketing contribution / Total sales revenue 
Marketing ROS = $65 million / $100 million = 0.65 or 65% 
Therefore, the answer is D) net marketing contribution.

MINI-CASE The Operating Income of Carbon Footwear Is $10 Million.Its Net