Question: The gross margin ratio: 1- Is also called the net profit ratio. 2- Indicates the percent of sales revenue remaining after covering the cost of

The gross margin ratio: 1- Is also called the net profit ratio. 2- Indicates the percent of sales revenue remaining after covering the cost of the goods sold. 3- Is also called the profit margin. 4- Is a measure of liquidity and should exceed 2.0 to be acceptable. 5- Should be greater than 1 for merchandising companies.

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