Question

Calculate 2018 and 2019 ROMI:

	2018 ($)	2019	2020
Revenue	$9,000,000	$10,000,000	$10,000,000
Variable Costs
Raw materials	$4,000,000	$5,000,000	$5,000,000
Production	$700,000	$700,000	$800,000
Distribution	$958,500	$1,006,425	$1,048,000
Gross profit	$3,341,500	$3,293,575	$3,152,000
Fixed Costs
Wages	$800,000	$800,000	$900,000
Marketing	$1,500,000	$1,300,000	$1,600,000
G&A	$200,000	$20,000	$200,000
Operating Profit	$841,500	$1,173,575	$452,000

Answer 1

ROMI - Return on market inverstments

particulars	2018	2019	2020
Growth in sales as compared or sales	9,000,000	10,000,000	10,00,000
growth	9,000,000	1,000,000	0
marketing cost	1500,000	1,300,000	1,600,000

formula for ROMI= (sales growth -Marketting cost)*100/ marketing investments

for 2018 growth will be assumed as $ 9000,000, hence  

Romi= (9000,000 - 1500,000)*100/ 1500,000 = 500%

for 2019

Romi = ( 1000,000 - 1300,000)*100/1300,000 = -23 %