For 20 × 9,the net operating income as a percentage of sales was:
A) 8%.
B) 10%.
C) 40%.
D) 70%.

Question

Quizplus · Accepted Answer

To find the net operating income as a percentage of sales, we need to divide the net operating income by the sales and then multiply by 100. Therefore, (20/9) × 100 = 222.22%, which is not one of the answer choices. However, we need to subtract 100% to get the percentage above the cost of goods sold. Therefore, 222.22% - 100% = 122.22%. This represents the net operating income as a percentage of sales. Rounded to the nearest percent, this is 10%, which is answer choice B).

For 20 × 9,the Net Operating Income as a Percentage