Profit margin indicates the portion of sales that
A)covers fixed expenses.
B)is not used to cover expenses.
C)equals contribution margin.
D)equals product contribution margin.

Question

Quizplus · Accepted Answer

Profit margin is the amount left over from sales revenue after all expenses, including fixed expenses and variable expenses, have been deducted. Therefore, profit margin represents the portion of sales that is not used to cover expenses.

Profit Margin Indicates the Portion of Sales That