________ measures the percentage of profit earned on each sales dollar before interest and taxes but after all costs and expenses.
A) Net profit margin
B) Operating profit margin
C) Gross profit margin
D) Earnings available to common shareholders

Question

Quizplus · Accepted Answer

Operating profit margin measures a company's profitability by revealing the percentage of profit generated from a company's operations after accounting for all non-operating expenses, such as interest expenses and taxes. A higher operating profit margin indicates that a company is using its resources more efficiently to generate profits.

________ Measures the Percentage of Profit Earned on Each Sales