The profit margin, a component of the rate of return on investment, focuses on the profitability by indicating the rate of profit earned on each sales dollar.

Name: The profit margin, a component of the rate of return on investment, focuses on the profitability by indicating the rate of profit earned on each sales dollar.
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Question

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This is an accurate definition of profit margin, which is calculated by dividing net income by total revenue. It shows what proportion of each sales dollar is profit.

The Profit Margin, a Component of the Rate of Return