Profit Margin Is Calculated by Dividing

question 181

Multiple Choice

Profit margin is calculated by dividing

• A) sales by cost of goods sold.
• B) gross profit by net sales.
• C) net income by stockholders' equity.
• D) net income by net sales.

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Definitions:

Public Good

A good that, once produced, is available for all to consume, regardless of who pays and who doesn’t; such a good is nonrival and nonexclusive, such as a safer community.

Regardless Of Payment

A phrase indicating that an action or decision is to be made without considering the payment or compensation involved.

Police Protection

Services provided by law enforcement agencies to ensure public safety and enforce the law.

Taxation

The process by which governments impose financial charges on individuals or entities, which funds public spending and services.