A ratio of net income of $100,000 to sales of $1,000,000 can be stated as
A)Net income is 1/10,or 10 percent,of sales.
B)For every dollar of sales,the company has an average net income of 10 cents.
C)The ratio of sales to net income is 10 to 1 (10:1),or sales are 10 times net income.
D)All of these choices.

Question

Quizplus · Accepted Answer

All of the statements are true and accurately represent the ratio of net income to sales. 
A) Net income is indeed 1/10 or 10% of sales. 
B) For every dollar of sales, the company earns 10 cents in net income. 
C) Sales are indeed 10 times net income, or the ratio of sales to net income is 10:1.

A Ratio of Net Income of $100,000 to Sales of $1,000,000