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

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

Quizplus · Accepted Answer

Profit margin is calculated by dividing net income by net sales, which measures how much out of every dollar of sales a company actually keeps in earnings.

Profit Margin Is Calculated by Dividing