The ratio that shows how much of each sales dollar that is available to cover operating expenses and provide a profit after the cost of goods sold has been covered is called
A)the contribution margin ratio.
B)return on equity.
C)the internal rate of return.
D)the gross margin ratio.

Question

Quizplus · Accepted Answer

The gross margin ratio expresses the profit margin as a percentage of sales after deducting the cost of goods sold.

The Ratio That Shows How Much of Each Sales Dollar