matrixetn Started The Discussion:
Its usefull to everybody who handaling the distributors or agencies of an organization.

RoI = (Profit/Cost) * 100

Example : PTB 700 RCV
MRP = 700
Discount = 22 %

1) Calculate Talk Time from MRP

Talk Time + Service Tax on Talk Time = MRP

Let Talk Time = X

X + 12.36 % X = MRP

X (1 + 0.1236) = MRP

X = MRP/1.1236

Talk Time = MRP / 1.1236 = 700/1.1236 = 623.00

2) Calculate Total Return when Talk Time on RCV is completed

Discount = 22 %
For PTB Pulse Paise is 1.20
And After discount of 22 % on pulse paise of 1.20
Discount is 0.26, Pulse Paise to Operator is = 1.20 – 0.26 = 0.94 Rs. /Min

Now calculate available mins from Talk Time and Pulse Paise

Rs. Mins
0.94 ŕ 1
623 ŕ ?

= 623/0.94
= 663 mins

Now calculate Amount that operator will get after usage of 663 mins

= 663 * 1.35 (1.35 is including service tax)

= 893.62 Rs.

Here, Operator’s Profit = 893.62 – 700 = 193.62

Now RoI = (Profit/Cost) * 100

= (193.62/700) * 100

RoI = 28 %

Reg,
Amit Bhatiya
Posted 20th August 2009 From India, Delhi
ROI : A performance measure used to evaluate the efficiency of an investment or to compare the efficiency of a number of different investments

The return on investment formula:

ROI = Gain from investment - cost of investment
-------------------------------------------
Cost of Investment
Posted 20th August 2009 From India, Madras
how ROI is calculated in sectors like FMCG? can any body tell me??????? my id is namra_kunu@yahoo.com
Posted 13th October 2009 From India, Mumbai

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