The profit margin ratio ____. shows how much gross profit business earns on every $1.00 of sales. focuses on the liquidity of the business. computed…

The profit margin ratio ____. shows how much gross profit business earns on every $1.00 of sales. focuses on the liquidity of the business. computed….

The profit margin ratio ____.

A. shows how much gross profit business earns on every $1.00 of sales. 

B. focuses on the liquidity of the business. 

C. computed by dividing net sales by net income. 

D. is often compared to industry average. 

(A was marked incorrect)

The profit margin ratio ____. shows how much gross profit business earns on every $1.00 of sales. focuses on the liquidity of the business. computed…