Which of the Following Must Be True

Multiple Choice

Which of the following must be true?

A) The higher the profit margin on sales ratio the better.
B) Too high of a profit margin on sales ratio may mean the company is charging too much for its goods.
C) The profit margin on sales ratio is greater than the gross profit ratio of a company.
D) If a company's gross profit ratio is greater than 10% than its profit margin on sales ratio must also be greater than 10%.