Enter the profit generated from management ($) and the cost of management ($) into the Return on Management Calculator. The calculator will evaluate and display the Return on Management.
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Return on Management Formula
The following formula is used to calculate the Return on Management.
ROM = P / CM *100
- Where ROM is the Return on Management (%)
- P is the profit generated from management ($)
- CM is the cost of management ($)
How to Calculate Return on Management?
The following example problems outline how to calculate Return on Management.
Example Problem #1:
- First, determine the profit generated from management ($).
- The profit generated from management ($) is given as: 1,000,000.
- Next, determine the cost of management ($).
- The cost of management ($) is provided as: 300,000.
- Finally, calculate the Return on Management using the equation above:
ROM = P / CM *100
The values given above are inserted into the equation below and the solution is calculated:
ROM = 1,000,000 / 300,000 *100 = 333.33 (%)
Example Problem #2:
For this problem, the variables needed are provided below:
profit generated from management ($) = 500,000
cost of management ($) = 100,000
This example problem is a test of your knowledge on the subject. Use the calculator above to check your answer.
ROM = P / CM *100 = ?
