QUESTION IMAGE
Question
what is the profit margin equal to?
net income divided by gross revenue
net income plus gross revenue
net income minus gross revenue
Brief Explanations
Profit margin is a financial metric that measures profitability. By definition, it is calculated as net income (profit) divided by gross revenue (total sales). The other options (addition or subtraction of net income and gross revenue) do not align with the concept of profit margin.
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A. net income divided by gross revenue