A Firm's Profit Margin, or Return on Sales, Is Computed

question 9

Multiple Choice

A firm's profit margin, or return on sales, is computed by dividing ________.

• A) net income by net sales
• B) gross profit by net sales
• C) net income by gross profit
• D) net income by cost of sales
• E) operating income by gross profit

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Definitions:

Levels Of Inequality

Describes variations in income, wealth, or opportunity between different groups within a society, nation, or globally.

Globalization

The process of interaction and integration among people, companies, and governments worldwide, fostering global trade and the exchange of ideas.

Foreign Capital

Investment funds originating from outside a country, used to finance domestic business operations and economic development.

World Trade Organization

An international organization that regulates international trade and ensures that trade flows as smoothly, predictably, and freely as possible.