Statement I:

The net profit margin is a better indicator of management performance, than gross profit margin, because it includes the effects of costs, many of which are controllable by management.

Statement II:

The higher the EBITDA margin ratio (%), the higher managements ability to produce profit.

Both statements are correct

Statement 1 is correct; statement 2 is incorrect

Both statements are incorrect

Statement 1 is incorrect; statement 2 is correct