Respuesta :
A measure of the percentage of each dollar of sales that results in Net Income is (D) profit margin.
What is the profit margin?
- Profit margin is a metric for determining profitability.
- It is calculated by calculating the profitability ratio of revenue.
- Profit margins are classified into three types: gross profit margin, operating profit margin, and net profit margin.
- Gross profit margin is calculated by dividing gross profit by net sales.
- Profit margin is a measure of the percentage of each dollar of sales that results in Net Income.
- Determine the net income of the company (Revenue – Expenses) Subtract net income from revenue (also called net sales) To calculate the profit margin percentage, multiply your total by 100.
- As a general rule, 5% is considered a low margin, 10% is considered a healthy margin, and 20% is considered a high margin.
Therefore, a measure of the percentage of each dollar of sales that results in Net Income is (D) profit margin.
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The correct question is given below:
A measure of the percentage of each dollar of sales that results in Net Income is:
a.) earnings per share
b.) return on assets
c.) return on common stockholder's equity
d.) profit margin
