The profit margin is calculated as the ratio of operating income to:
A) invested assets.
B) investment turnover.
C) sales.
D) residual income.

Name: The profit margin is calculated as the ratio of operating income to: A) invested assets. B) investment turnover. C) sales. D) residual income.
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Question

Quizplus · Accepted Answer

Profit margin is a profitability ratio that measures how much of every dollar in sales a company keeps as earnings. It is calculated as operating income divided by sales. Therefore, the correct answer is C.

The Profit Margin Is Calculated as the Ratio of Operating