Selected financial data from Osterville Company for the most recent year appear below: The income tax rate is 40%.
-Net operating income as a percentage of sales was:
A)40%
B)30%
C)10%
D)5%

Question

Selected financial data from Osterville Company for the most recent year appear below:  The income tax rate is 40%.
-Net operating income as a percentage of sales was:
A)40% 
B)30% 
C)10% 
D)5%

Quizplus · Accepted Answer

Net operating income as a percentage of sales is calculated by dividing net operating income by sales and then multiplying by 100. The correct percentage is 10%.

Selected Financial Data from Osterville Company for the Most Recent