Question: The gross margin ratio: Multiple Choice Is also called the profit margin. Is a measure of liquidity and should exceed 2.0 to be acceptable. Should

The gross margin ratio:

Multiple Choice

  • Is also called the profit margin.

  • Is a measure of liquidity and should exceed 2.0 to be acceptable.

  • Should be greater than 1 for merchandising companies.

  • Indicates the percent of sales revenue remaining after covering the cost of the goods sold.

  • Is also called the net profit ratio.

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