A company reports net sales of \$500,000 and income from operations of \$150,000. What does the income from operations percentage indicate about the company's operational efficiency?

• A. The company retains 30% of its sales as operational income, indicating strong efficiency.
• B. The company is not profitable.
• C. The company has high operational costs, reducing efficiency.
• D. The company has low sales volume.

Answer: (A)