All of the Following Statements Regarding Profit Margin Are True

Multiple Choice

All of the following statements regarding profit margin are true except:

A) Profit margin reflects the percent of profit in each dollar of revenue.
B) Profit margin is also called return on sales.
C) Profit margin can be used to compare a firm's performance to its competitors.
D) Profit margin is calculated by dividing net income by net sales.
E) Profit margin is not a useful measure of a company's operating results.