Profit margin is calculated by dividing
A) sales by cost of goods sold.
B) net earnings by net sales.
C) net earnings by shareholders' equity.
D) gross profit by net sales.

Name: Profit margin is calculated by dividing A) sales by cost of goods sold. B) net earnings by net sales. C) net earnings by shareholders' equity. D) gross profit by net sales.
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Question

Quizplus · Accepted Answer

Profit margin is calculated by dividing net earnings by net sales, which shows the percentage of revenue that has turned into profit.

Profit Margin Is Calculated by Dividing