The formula to calculate the Return on Sales (ROS) is:
\[ \text{ROS} = \left( \frac{\text{Operating Profit}}{\text{Net Sales}} \right) \times 100\% \]
Return on Sales (ROS) is a measure of a company's operational efficiency, indicating the percentage of revenue that is converted into operating profit. It helps assess how well a company manages its costs relative to its sales.
Let's assume the following:
To calculate the ROS:
\[ \text{ROS} = \left( \frac{30,000}{200,000} \right) \times 100\% = 15\% \]
Therefore, the Return on Sales (ROS) is 15%.
