Calculate the Return on Capital Employed If Net Profit Before

question 28

Multiple Choice

Calculate the return on capital employed if net profit before interest and tax is $440,000,shareholders' funds are $4,000,000 and long-term loans are $3,000,000.

• A) 3.1%.
• B) 11.0%.
• C) 6.2%.
• D) 12.2%.

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Definitions:

Units

This term refers to a measure of quantity, such as items or products, used in manufacturing and production.

Selling Expenses

Costs associated with the distribution, marketing, and sale of a product or service.

Administrative Expenses

Costs related to the general operation of a company, including expenses such as salaries of executive officers and costs of general services.

Variable

An element or factor that can change or vary, affecting the outcome of mathematical models, experiments, or financial projections.