Peyton Co.'s sales rose 12 percent over prior year sales of ($ 100,000); however, net income increased

Question:

Peyton Co.'s sales rose 12 percent over prior year sales of $\$ 100,000$; however, net income increased by only 5 percent over the prior year's net income. If Peyton's prior year return on sales ratio was 8 percent, what is the current year return on sales ratio?

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