Given an operating income of $5,650,000 and total revenue of $68,558,000, what is the return on sales ratio?

Multiple choice question for Performance Measurement. Select an option, then review the explanation below.

Explanation

Return on sales is calculated by dividing operating income by revenue and then multiplying by 100 to get a percentage. Using the values provided, (5,650,000 / 68,558,000) × 100 = 8.24%.

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Given an operating income of $5,650,000 and total revenue of $68,558,000, what is the return on sales ratio?

Explanation

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