The relationship between a retailer's net profits and net sales is its ________.
A) asset turnover
B) net profit margin
C) operating costs
D) cost of goods sold

Question

Quizplus · Accepted Answer

The net profit margin is the ratio that expresses a retailer's net profit as a percentage of its net sales. It measures the retailer's profitability, indicating how much of each dollar of sales is kept as profit after all expenses have been paid. Thus, the higher the net profit margin, the more efficient the retailer's operations are in generating profit from its sales.

The Relationship Between a Retailer's Net Profits and Net Sales