Net income divided by sales is the formula for:
A) profit margin on sales.
B) the current ratio.
C) gross margin.
D) the debt ratio.
E) return on assets.

Name: Net income divided by sales is the formula for: A) profit margin on sales. B) the current ratio. C) gross margin. D) the debt ratio. E) return on assets.
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Question

Quizplus · Accepted Answer

Net income divided by sales is the formula for profit margin on sales, which measures the percentage of each dollar of revenue that is left after expenses.

Net Income Divided by Sales Is the Formula For