Profit Margin Is Calculated by Dividing Net Sales by Net

question 109

True/False

Profit margin is calculated by dividing net sales by net income.

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Definitions:

Tax

A mandatory financial charge levied by a government on individuals, corporations, or other legal entities to fund government spending and various public expenditures.

Levied

The imposition or collection of a tax, charge, or fine.

Market Activity

The various transactions, movements, and behaviors of participants that occur within a marketplace, influencing the supply and demand of goods and services.

Taxes

Mandatory monetary fees or different forms of levies collected from taxpayers by government entities to support government expenses and a range of public services.