Preferred Pet Care, Inc., has recorded the following on its income statement for the period ending December 31, 2016: 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, 2016:  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 knowledge of the average return on sales for competitors in the veterinary services industry, it is impossible to determine whether a 34% return is outstanding or not.