Please Calculate the Profit Contribution as a Percentage of Sales

question 46

Multiple Choice

Please calculate the profit contribution as a percentage of sales to be used in the ROAM calculation, if sales = $20,000,000; accounts receivable = $8,000,000; and profit contribution = $5,000,000:

• A) 20 percent.
• B) 40 percent.
• C) 50 percent.
• D) 5 percent.
• E) 25 percent.