The net profit margin measures the percentage of each sales dollar remaining after all costs and expenses,including interest,taxes,and common stock dividends,have been deducted.

Question

Quizplus · Accepted Answer

The statement is true, as the net profit margin formula is: Net Profit Margin = (Net Profit After Taxes / Total Revenue) x 100%. It shows the profitability of a company by indicating how much of each dollar earned is translated into profits.

The Net Profit Margin Measures the Percentage of Each Sales