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Answer the Following Questions Using the Information Below:
the Bandage

Question 73

Multiple Choice

Answer the following questions using the information below:
The Bandage Medical Supply Company has two divisions that operate independently of one another.The financial data for the year 2017 reported the following results:
 North  South  Sales $3000000$2500000 Operating profit 750000550000 Taxable income 650000375000 Investment 60000005000000\begin{array} { l r r } & \text { North } & \text { South } \\\text { Sales } & \$ 3000000 & \$ 2500000 \\\text { Operating profit } & 750000 & 550000 \\\text { Taxable income } & 650000 & 375000 \\\text { Investment } & 6000000 & 5000000\end{array} The company's desired rate of return is 10%.Profit is defined as operating profit.
-Which of the following is the correct formula for return on sales?


A) Investment/Profit
B) Profit/Revenue
C) Revenue/Investment
D) Profit/Investment

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