Calculate the Return on Sales for a Business That Has

question 1

Multiple Choice

Calculate the return on sales for a business that has net income of $25,000 and sales of $60,000.

• A) 42%
• B) 0.42
• C) 4.2
• D) 0.042
• E) None of the above

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Definitions:

Total Cost

The complete cost of production, including fixed and variable costs.

Break-even

The point at which total costs and total revenue are equal, resulting in no net loss or gain for a business.

Unit Variable Costs

The costs associated with producing one additional unit of a product, including materials, labor, and other expenses that vary with production level.

Rent

The payment made to a landlord for the use of property, such as an apartment or commercial space, for a specified period.