A Company Reports Net Income of $70,000 and Net Sales

question 60

Multiple Choice

A company reports net income of $70,000 and net sales of $950,000. Which of the following is the rate of return on net sales?

• A) 0.05
• B) 0.20
• C) 0.07
• D) 0.66

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Definitions:

Resale Restriction

A policy or legal condition that limits the ways in which a product can be resold by purchasers.

Exclusive Dealing

A contractual agreement where one party grants another party the sole rights to buy, sell, or distribute goods or services in a specified market or territory.

Geographical Areas

Specific locations or regions within a broader space, defined by natural or artificial boundaries.

Resale Restriction

Rules or conditions imposed on the resale of a product, often used by manufacturers to control the distribution or price of their products in the secondary market.