The ________ indicates the percentage of each sales dollar remaining after the firm has paid for its goods.
A) net profit margin
B) operating profit margin
C) gross profit margin
D) earnings available to common shareholders

Question

Quizplus · Accepted Answer

The gross profit margin represents the percentage of each sales dollar that remains after deducting only the cost of goods sold. In other words, it indicates the margin that the company earns solely from the sale of its products or services, before deducting any other expenses such as operating expenses, taxes or interest. The formula for gross profit margin is (Revenue - Cost of Goods Sold)/Revenue, which is expressed as a percentage.

The ________ Indicates the Percentage of Each Sales Dollar Remaining