Which of the following statements is true regarding profit margin? A)Profit margin can be improved by decreasing the gross profit rate and/or controlling operating expenses and other costs. B)Profit margin does not vary across industries. C)Discount stores with high merchandise turnover generally have higher profit margins. D)If the profit margin has a higher value, this suggests favorable return on each dollar of sales.

Question

Quizplus · Accepted Answer

A higher profit margin indicates that a company is earning more profit per dollar of sales, which suggests a favorable return on sales.

Which of the Following Statements Is true Regarding Profit Margin