What Does the Gross Margin Percentage Measure

question 80

Multiple Choice

What does the gross margin percentage measure?

• A)The percentage of each sales dollar that the entity earns in profit.
• B)The amount of profit available to meet operating expenses.
• C)The amount of profit being generated by the company's assets.
• D)The average time it takes the company to turn inventory into profit.

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Definitions:

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