Asked by Charlene Wright on May 11, 2024
Verified
Profit margin reflects the percent of net income in each dollar of net sales.
Profit Margin
A financial metric indicating the percentage of revenue that remains as profit after all expenses have been deducted.
Net Sales
The revenue from sales transactions after deductions for returns, allowances, and discounts have been made.
- Acquire knowledge on the computation and relevance of financial metrics including profit margin.
Verified Answer
IJ
ibette jimenezMay 17, 2024
Final Answer :
True
Explanation :
This statement is true. Profit margin is calculated by dividing net income by net sales and expressing the result as a percentage.
Learning Objectives
- Acquire knowledge on the computation and relevance of financial metrics including profit margin.