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:

NLRB

The National Labor Relations Board, a federal agency in the United States that enforces labor laws in relation to collective bargaining and unfair labor practices.

Unfair Labor Practice

Actions by employers or unions that violate employees' rights or the National Labor Relations Act.

Hot-Cargo Contract

An agreement whereby an employer voluntarily agrees with a union not to handle, use, or deal in nonunion-produced goods for another employer.

NRLB

The National Labor Relations Board, a U.S. government agency responsible for enforcing U.S. labor law in relation to collective bargaining and unfair labor practices.