Which of the following expressions is termed the profit margin factor as used in determining the return on investment?
A) Sales/Income from Operations
B) Income from Operations/Sales
C) Invested Assets/Sales
D) Sales/Invested Assets

Question

Quizplus · Accepted Answer

The profit margin factor is the ratio of income from operations to sales. This ratio indicates the percentage of sales revenue that is retained as profit after deducting all expenses related to the production and distribution of the goods or services.

Which of the Following Expressions Is Termed the Profit Margin