Knowledge Check $01$

A gross profit ratio $of55\%$ indicates that:

for each $$1of$ net income, the company generates $$0\mathrm{.}55in$ gross profit.

for each $$1of$ sales, the company generates $$0\mathrm{.}55in$ gross profit.

for each $$1of$ gross profit, the company generates $$0\mathrm{.}55in$ net income.

for each $$1of$ gross profit, the company generates $$0\mathrm{.}55in$ sales.