Approximately What Percentage of the Retail Cost of a Cosmetic

question 56

Multiple Choice

Approximately what percentage of the retail cost of a cosmetic goes towards raw materials?

• A) 1%
• B) 2%
• C) 10%
• D) 25%
• E) 75%

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Definitions:

Net Income

The profit of a company after all expenses and taxes have been deducted from revenue.

Stockholders' Equity

The residual assets of a company that belong to the shareholders, calculated as the total assets minus total liabilities.

Total Asset Turnover Ratio

A financial ratio that measures a company's ability to generate sales from its assets by comparing net sales to average total assets.

Net Profit Margin Ratio

A financial metric that shows the percentage of a company's revenue that remains as profit after all operating expenses, interest, taxes, and preferred stock dividends have been deducted.