The rate of return on net sales is calculated as:
A)net income divided by net sales.
B)operating income divided by net sales.
C)dividends paid during the year divided by net sales.
D)gross profit divided by net sales.

Question

Quizplus · Accepted Answer

The rate of return on net sales, also known as the profit margin, is calculated by dividing net income by net sales. This ratio indicates how much profit a company makes for each dollar of sales.

The Rate of Return on Net Sales Is Calculated As