(Overhead to Sales Ratio)
Raj Inc. Statement of Comprehensive Income, 2012 (in $millions)
|
Sales |
$155 |
|
Cost of sales |
45 |
|
Gross profit |
110 |
|
Selling, administration expenses |
65 |
|
Operating profit before interest and taxes |
45 |
|
Interest |
10 |
|
Profit before taxes |
35 |
|
Taxes |
7 |
|
Profit after taxes |
$28 |
Calculate the overhead to sales ratio.