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)Contribution margin percentage
B)Return on equity.
C)Internal rate of return.
D)Gross margin percentage.

Question

Quizplus · Accepted Answer

The gross margin percentage is a ratio that shows how much of each sales dollar is available after the cost of goods sold has been covered. This amount is used to cover operating expenses and provide a profit.

The Ratio That Shows How Much of Each Sales Dollar