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.

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Definitions:

U.S. Dollars

The official currency of the United States, commonly used worldwide as a standard for financial transactions.

Canadian Dollars

The currency of Canada, often represented by the symbol CAD or C$.

Swedish Krona

The official currency of Sweden, symbolized as SEK, used for all forms of transactions within the country.

Purchasing Power Parity

A financial model that evaluates the currencies of various nations by using a "basket of goods" method, indicating that exchange rates need to balance out so the cost of the same goods is the same in different countries.