Profit margin is calculated by dividing profit by
A)sales.
B)sales revenues.
C)net sales.
D)gross sales.

Name: Profit margin is calculated by dividing profit by A)sales. B)sales revenues. C)net sales. D)gross sales.
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Question

Quizplus · Accepted Answer

Profit margin is calculated by dividing profit (the amount of revenue that exceeds total expenses) by net sales (total sales revenue minus any returns, discounts, or allowances). This ratio provides a measure of how much profit a company makes for every dollar of net sales earned.

Profit Margin Is Calculated by Dividing Profit by