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

question 108

Multiple Choice

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.