A Measure of the Percentage of Each Dollar of Sales

question 12

Multiple Choice

A measure of the percentage of each dollar of sales that results in net income is

• A) profit margin.
• B) return on assets.
• C) return on common stockholders' equity.
• D) earnings per share.

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Definitions:

Quantity Supplied

The amount of a good or service that producers are willing and able to sell at a given price over a specified period.

Commodity

A basic good used in commerce that is interchangeable with other goods of the same type.

Grain Surplus

An excess amount of grain production over the demand, leading to stored or wasted grain.

Market Economy

An economic system where decisions regarding investment, production, and distribution are based on supply and demand, and prices of goods and services are determined in a free price system.