Net income divided by sales is the correct formula for calculating:
A) profit margin on sale
B) a current ratio
C) a liquidity ratio
D) return on total assets s
E) a corporate evaluation.

Question

Quizplus · Accepted Answer

The formula of net income divided by sales is used to calculate the profit margin on sales, which indicates the percentage of each dollar of sales that results in profit.

Net Income Divided by Sales Is the Correct Formula for Calculating