Which of the following statements MOST accurately describes the profit margin?
A) How efficiently a division uses its average assets to generate sales
B) How much operating income the division earns on every dollar of sales
C) How much return a division generates on average assets
D) How much extra income does a division generate above the minimum acceptable level

Question

Quizplus · Accepted Answer

Profit margin is a measure of how much operating income a company earns on every dollar of sales, indicating the efficiency and profitability of the business operations. The calculation is expressed as a percentage of net income divided by revenue.

Which of the Following Statements MOST Accurately Describes the Profit