What does net profit margin indicate? A. The marginal growth or decline of net income year...

What does net profit margin indicate?

A. The marginal growth or decline of net income year over year.
B. How much of a return is generated from an investment.
C. How much net profit is generated per each dollar of revenue.
D. How much net profit is generated for every dollar of assets.

Solutions

Expert Solution

Answer) option c

How much net profit is generated per each dollar of revenue.

Profit margin =net income/sales

Thus The net profit margin is equal to how much net income or profit is generated as a percentage of revenue

ekkarill92 answered 1 year ago

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