A retailer with annual sales of $5 million and operating expenses of $2 million has an efficiency rating of 40 percent.

Question

Quizplus · Accepted Answer

The efficiency rating of a retailer is calculated by dividing the gross profit (total sales minus cost of goods sold) by the total revenue (total sales).

Efficiency rating = (total sales - cost of goods sold) / total sales

We do not have information about the cost of goods sold in the given scenario, so we cannot calculate the efficiency rating. Therefore, we cannot determine if the statement is true or false.

A Retailer with Annual Sales of $5 Million and Operating