In Scenario 8-2 above,after analyzing the net profit margin,you determined that
A) Denny has a problem because this number is so high.
B) Denny is generating 10 cents of after-tax profit per each dollar of sales.
C) Denny is generating 10 percent on after-tax profits.
D) Denny should be concerned with management efficiency.

Question

Quizplus · Accepted Answer

The net profit margin indicates how much profit a company makes for each dollar of sales after taxes. If Denny's net profit margin is 10%, it means he is generating 10 cents of after-tax profit per dollar of sales.

In Scenario 8-2 Above,after Analyzing the Net Profit Margin,you Determined