Which of the following statements about the profit margin is NOT true?
A) The profit margin indicates the percentage of sales revenue that ends up as profit.
B) The profit margin gives some indication of pricing strategy.
C) A supermarket would be expected to have a high profit margin.
D) If the sales price decreases and expenses stay consistent,the profit margin will decrease.

Question

Quizplus · Accepted Answer

A supermarket would not necessarily be expected to have a high profit margin. In fact, supermarkets often have low profit margins because they operate on high volume and low profit per unit sold.

Which of the Following Statements About the Profit Margin Is