Explanation Profit margin on sales ratio used to evaluate the profitability position of the firm over the period of time. It is also called as the net profit margin on sales ratio or profit margin ratio. The formula used to calculate the profit margin on sales ratio is as follows: Profit margin on sales ratio = Net income Sales × 100 Compute profit margin on sales ratio:

3rd Edition

ISBN: 9780131060876

Author: REIMERS

Publisher: PEARSON

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Chapter 3, Problem 22SEB

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Compute profit margin on sales ratio.

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Chapter 3, Problem 21SEB

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Compute profit margin on sales ratio.

Solution Summary: The author explains that profit margin on sales ratio is used to evaluate the profitability position of the firm over the period of time.

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