Regarding the Profit Margin Ratio,which of the Following Statements Is

question 23

Multiple Choice

Regarding the profit margin ratio,which of the following statements is incorrect?

• A) The higher the profit margin ratio, the more sales dollars end up as profit.
• B) The profit margin ratio is computed by dividing net sales by net income.
• C) The profit margin ratio shows how much net income a business earns on every $1.00 of sales.
• D) The profit margin ratio focuses on the profitability of a company and is often reported in the business press.

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Definitions:

Funding

The act of providing financial resources to support a program, project, or organization.

Current Situation

The present state or condition of something, often referring to specific contexts or events.

Cover Letter

A document sent with a resume to provide additional information on one's skills and experience, typically a summary of why the applicant is suitable for the position.

Sales Proposal

A document offered to potential clients by a seller to persuade them to purchase a product or service.