Calculate the return on sales for Matt-Brine Inc. ,which has a net marketing contribution of $450 million and total sales of $800 million.The other expenses,including interest and taxes,amount to $250 million.
A)25%
B)20%
C)30%
D)10%
E)45%

Question

Quizplus · Accepted Answer

Return on sales is calculated as (Net Marketing Contribution / Total Sales) * 100. For Matt-Brine Inc., it is ($450 million / $800 million) * 100 = 56.25%. However, considering other expenses, the net profit is $450 million - $250 million = $200 million. Thus, the return on sales is ($200 million / $800 million) * 100 = 25%.

Calculate the Return on Sales for Matt-Brine Inc