Preferred Pet Care,Inc. ,has recorded the following on its income statement for the period ending,December 31,2012: The return on sales = 34%.This return is outstanding and there is no need to compare this return to competitors in the veterinary services industry.

Question

Preferred Pet Care,Inc. ,has recorded the following on its income statement for the period ending,December 31,2012:  The return on sales = 34%.This return is outstanding and there is no need to compare this return to competitors in the veterinary services industry.

Quizplus · Accepted Answer

Without knowing the returns of competitors in the veterinary services industry, it is not possible to determine whether a 34% return on sales is outstanding or not. It is important to compare the return to industry standards to determine the company's performance relative to its competitors.