The formula to compute the rate of return on net sales is
A)net income/net sales.
B)net income/average common stockholder's equity.
C)net income + interest expense, then divide by average total assets.
D)net income/interest expense.

Question

Quizplus · Accepted Answer

The formula to compute the rate of return on net sales is net income divided by net sales. This measures the percentage of each sales dollar that is translated into net income.

The Formula to Compute the Rate of Return on Net