Final answer:
The ratio that is computed by dividing operating income by net sales is the return on sales (ROS). It measures the efficiency of a firm in generating profit from its sales, differentiating from gross profit percent, profit margin, and return on assets which are all distinct financial ratios. The option (C) is correct.
Step-by-step explanation:
The ratio computed by dividing operating income by net sales is known as the return on sales (ROS). This financial metric is a measure of the efficiency with which a firm can generate profit from its net sales, and is often used to assess the operational performance of a company. It demonstrates how much operating income is generated for each dollar of sales.
In contrast, gross profit percent is calculated by dividing gross profit by net sales, which measures the profitability after deducting the cost of goods sold from total revenues. The profit margin usually refers to the net profit margin, which is net income divided by net sales, reflecting the overall profitability after all expenses. Lastly, return on assets (ROA) measures a company's profitability relative to its total assets. Therefore, option (C) is correct.