Managerial Accounting for Managers
Managerial Accounting for Managers
4th Edition
ISBN: 9781259578540
Author: Eric Noreen, Peter C. Brewer Professor, Ray H Garrison
Publisher: McGraw-Hill Education
Question
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Chapter B, Problem B.6P

1.

To determine

Concept Introduction:

Profit margin ratio:

Profit margin is one of the profitability ratios used in the ratio analysis. This ratio indicates the percentage of net income earned over net sales. 

To evaluate: the use of margin as profitability measure.

2.

To determine

Concept Introduction:

Profit margin ratio:

Profit margin is one of the profitability ratios used in the ratio analysis. This ratio indicates the percentage of net income earned over net sales. 

To evaluate: the use of revenue in the denominator of the profitability measure.

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