Sales margin is defined as the percentage of each sales dollar that remains as profit after all expenses are covered. This metric is crucial for understanding how efficiently a company is converting sales into profits.

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Sales Margin Shows

Question 22

Multiple Choice

Sales margin shows:

A) the amount of income generated by each dollar of capital investment.
B) the number of sales dollars generated by each dollar of capital investment.
C) the percentage of each sales dollar that remains as profit after all expenses are covered.
D) the amount of capital investment generated by each sales dollar.
E) the amount of capital investment generated by each dollar of income.

Correct Answer: