Question
Question 9 Which of the following describes a difference between the profit margin and the gross profit rate? Question 9 options: No difference exists. They
Question 9
Which of the following describes a difference between the profit margin and the gross profit rate?
Question 9 options:
| No difference exists. They are the same thing. |
| The gross profit rate is computed by dividing net sales by gross profit and the profit margin is computed by dividing net sales by net income |
| The gross profit rate will normally be higher than the profit margin ratio |
| A profit margin of 7% means that 7 cents of each net sales dollar ends up in net income and a gross profit rate of 7% means that the cost of the goods were 7% of the selling price |
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