Selected information for Isaac Company is as follows:

-Refer to Exhibit 14-1. Isaac's return on sales, rounded to the nearest percentage point, is

Question

Selected information for Isaac Company is as follows:
 
-Refer to Exhibit 14-1. Isaac's return on sales, rounded to the nearest percentage point, is

Quizplus · Accepted Answer

Isaac's return on sales can be calculated as Net Income / Net Sales. From the information given, Net Income is $260,000 and Net Sales is $1,000,000. Therefore, the return on sales is ($260,000 / $1,000,000) * 100 = 26%. Rounded to the nearest percentage point, the answer is 26%.

Selected Information for Isaac Company Is as Follows