Calculate the return on capital of a business whose net marketing contribution is $300 million and total invested capital is $900 million.The other expenses,including interest and taxes,amount to $120 million.
A)40%
B)15%
C)5%
D)30%
E)20%

Question

Quizplus · Accepted Answer

Return on capital is calculated as (Net Marketing Contribution - Other Expenses) / Total Invested Capital. Here, it is ($300 million - $120 million) / $900 million = $180 million / $900 million = 20%.

Calculate the Return on Capital of a Business Whose Net