The correct answer is: C. 66.23%
The operating ratio is a measure of a company’s profitability. It is calculated by dividing the company’s operating expenses by its net sales. In this case, the operating ratio is 66.23%, which means that the company spends 66.23 cents on operating expenses for every dollar of net sales.
Option A is incorrect because it is the cost of goods sold as a percentage of net sales. Option B is incorrect because it is the operating expenses as a percentage of net sales. Option D is incorrect because it is the gross profit margin as a percentage of net sales.
The operating ratio is a useful tool for comparing the profitability of different companies in the same industry. It can also be used to track a company’s profitability over time. A high operating ratio indicates that a company is spending a lot of money on operating expenses, which may be a sign of inefficiency. A low operating ratio indicates that a company is spending less money on operating expenses, which may be a sign of efficiency.
However, it is important to note that the operating ratio is only one measure of a company’s profitability. Other factors, such as the company’s debt load and its return on equity, should also be considered when evaluating a company’s financial performance.