BUSINESS ADMINISTRATION
BUSINESS MATHEMATICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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True
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False
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Detailed explanation-1: -Profit margin shows profit as it relates to a product’s sales price or revenue generated. Markup shows profit as it relates to costs.
Detailed explanation-2: -Margin (also known as gross margin) is sales minus the cost of goods sold. For example, if a product sells for $100 and costs $70 to manufacture, its margin is $30. Or, stated as a percentage, the margin percentage is 30% (calculated as the margin divided by sales).
Detailed explanation-3: -The answer is d. If the profit margin has a higher value, this suggests a favorable return on each dollar of sales. Profit margin measures the company’s return in percentage on each dollar of sales.
Detailed explanation-4: -A profit margin expresses how much of every dollar of sales a company keeps in its earnings. At the same time, it takes into account the costs of serving customers to find the actual profit.