Proportion of enterprise management expenses
Between 5% and 7%. The reasonable proportion of management expenses to operating income varies from industry to industry. When the company's business is stable, the proportion of management expenses to income is stable at 5-7%, so as to save expenses and improve the return on investment. The ratio of management expenses is the ratio of management expenses to operating income, which is high in management fee rate, indicating that the profits of enterprises are much consumed by organizational management expenses.