Which of the ratios listed helps to indicate the average profit on each dollar of sales?
A) Current ratio
B) Profit margin
C) Quick ratio
D) Return on assets

Name: Which of the ratios listed helps to indicate the average profit on each dollar of sales? A) Current ratio B) Profit margin C) Quick ratio D) Return on assets
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Question

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The profit margin ratio indicates the average profit on each dollar of sales by calculating the net income as a percentage of sales.

Which of the Ratios Listed Helps to Indicate the Average