# Calculate the return on sales for a business that has net income of $25,000 and sales of $60,000.

**Solution:**

The return on sales is calculated by dividing the operating profit of a company by its net sales.

As this indicator is always expressed by a percentage, the last step of calculations is obtained by multiplying the fraction by 100%.

Return on sales = (net income/net sales)100%

Given, net income = $25,000

Net sales = $60,000

Return on sales = (25,000/60,000)100

= (25/60)100

= (5/12)100

= 500/12

= 41.667% ≈ 42%

Therefore, the return on sales is 42%.

## Calculate the return on sales for a business that has net income of $25,000 and sales of $60,000.

**Summary:**

The return on sales for a business that has net income of $25,000 and sales of $60,000 is 42%

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