The ratio of operating income to sales, which is also a factor in the DuPont formula for determining the return on investment (ROI), is called
A)profit margin
B)indirect expenses
C)investment turnover
D)cost

Question

Quizplus · Accepted Answer

Profit margin is the correct term for the ratio of operating income to sales, which is used in the DuPont formula to help determine return on investment (ROI). This ratio measures how much profit a company makes for each dollar of sales.

The Ratio of Operating Income to Sales, Which Is Also