Calculate a Business's Return on Sales When It Makes a Net

question 17

Multiple Choice

Calculate a business's return on sales when it makes a net profit of $500,000 from sales of $3 million.

• A)60%
• B)16.7%
• C)30.5%
• D)50.5%
• E)24.8%

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Definitions:

Opportunity Cost

The cost of forgoing the next best alternative when making a decision or choosing a particular course of action.

Comparative Advantage

The ability of an individual, firm, or country to produce a good or service at a lower opportunity cost than competitors, leading to more efficient global production patterns.

Specialize

The process of focusing efforts and resources on a narrow area of expertise to increase efficiency and proficiency.

Comparative Advantage

The ability of an individual, firm, or country to produce a good or service at a lower opportunity cost than competitors.