f a company gains 40 $ for every 1000$ in revenue for a certain product, what is the profit margin for that product? 4 percent - 4 percent 4 $ - 4 $
f a company gains 40 $ for every 1000$ in revenue for a certain product, what is the profit margin for that product? 4 percent - 4 percent 4 $ - 4 $
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
If a company gains 40 $ for every 1000$ in revenue for a certain product, what is the profit margin for that product?
4 percent
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- 4 percent
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4 $
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- 4 $
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Expert Solution
Step 1
Profit Margin is the percentage of profit earned over its net sales. It can be calculated as under.
Profit Margin = (Net Profit / Net Sales ) x 100
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