Capitol Enterprises Uses the Cost-Sales Ratio to Measure the Performance

Multiple Choice

Capitol Enterprises uses the cost-sales ratio to measure the performance of its salespeople. If, in the past year, a salesperson made $800,000 in sales, had travel expenses of $23,000, and received a base salary of $40,000 plus $6,000 in commissions, what was this sales rep's cost-sales ratio (to the nearest whole number percent) ?

A) 3 percent
B) 6 percent
C) 9 percent
D) 12 percent
E) 15 percent