What Does the Profit Margin Measure

question 30

Multiple Choice

What does the profit margin 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:

Leisure

The time available for ease and relaxation where no work is done, often considered as time spent away from business, work, job hunting, domestic chores, and education.

Workers' Incomes

The financial compensation received by employees for their labor, including wages, salaries, and bonuses.

Labor Supplied

The total hours of work that workers are willing to offer at a given wage rate.

Hourly Wage Rate

The amount of money paid for each hour of work.