Which of the Following Is the Correct Formula for the Profit

question 1

Multiple Choice

Which of the following is the correct formula for the profit margin ratio?

• A) Net profit / Sales
• B) Net sales / Average total assets
• C) Net profit × Capital invested
• D) Operating income / Net sales

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Definitions:

Union Workers

Employees who are members of a labor union, which negotiates collective bargaining agreements on their behalf.

Perfectly Inelastic Supply

A market condition where the quantity supplied does not change regardless of price fluctuations.

Bargaining Power

The relative capacity of one of the parties in a negotiation or deal-making scenario to influence the terms of an agreement.

Non-Union Workers

Employees who are not members of a labor union and therefore may not benefit from collective bargaining agreements.