Calculate the return on capital employed (ROI) from the following information:

Question -

Capital employed is 1,00,000

Net profit on sales is 6%

Gross Profit Margin 90,000 (15%)

Options:

A . 13%

B . 28%

C . 36%

D . 20%

Answer: Option C
:
C

Revenue from operations = 90,000/15% = 6,00,000

Net profit = 6,00,000*6% = 36000

ROI= (36,000/1,00,000)*100 = 36%

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