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Return on sales (ROS) is profit as a percentage of sales revenue. ROS indicates how effective and efficient a company is in managing its resources.
Return on sales (ROS) is profit as a percentage of sales revenue. ROS indicates how effective and efficient a company is in managing its resources. The table below provides data to compare the profitability of two competitors. Using the data in the table below, calculate the return on sales for each company. Which company is the better marketer as measured by return on sales? (img: "Extra Credit ROS Data.jpg") Company A Company B Total revenue Cost of Goods Sold Total Expenses 47,697,041 8,594,792 13,350,000 44,366,586 7,829,322 11,380,000 Company A because its ROS is lower Company A because its ROS is higher Company B because its ROS is lower. Company B because its ROS is higher. Both companies are equally effective as measured by ROS
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