Given the information below, calculate the Return on Sales (ROS) for this company? Recall that ROS = Net Income / Sales.

Assets= $150,000

Basic Earning Power (BEP)= 20%

Total Asset Turnover (TAT)= 2

Times Interest Earned (TIE)= 4

Tax Rate= 25%

Answers:

A) 5.6%

B) 10.4%

C) 13.7%