Profit margin is calculated by dividing:Question 2Answera.sales by cost of sales.b.profit by total assetsc.profit by equityd.profit by net sales
Question
Solution 1
Break Down the Problem
- Identify the key components needed to calculate the profit margin.
- Examine each answer choice to determine which corresponds to the correct formula for profit margin.
Relevant Concepts
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Profit Margin Formula: Profit margin is typically expressed as: [
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Similar Questions
If sales revenue is $600,000 and cost of sales is $450,000, the gross profit margin is:33%25%67%75%
Gross profit ratio is computed by dividing gross profit by:Group of answer choicesfinancial expenses.cost of sales.net sales.operating expenses.
Contribution margin is also known as .a.net profit.b.gross profit.c.net loss.d.marginal income .
When you minus direct production costs from selling price, you get your profit margin. Group of answer choicesTrueFalse
What is the formula for contribution margin?Select an answer:sales - SG&Asales - fixed costssales - variable costsales - CapEx
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