Question
Pregunta 3 Which level of profit margin considers all the costs of doing business such as salaries, rent,and utilities, and the direct cost of bringing a product or service to market? Pre-tax profit margin Gross profit margin Operating profit margin Net profit margin
Answer
4.1
(262 Votes)
Annabelle
Elite · Tutor for 8 years
Answer
D
Explanation
The question tests your understanding of different profit margin metrics. Profit margin is a ratio that a company uses to gauge its profitability. The following are a few key types of profit margins:1. Gross profit margin is a company's total revenue minus its cost of goods sold (COGS), divided by total revenue. It only considers the direct costs associated with production.2. Pre-tax profit margin is a profit margin scenario before tax expenses are deducted. It considers taxes, and reflects a couple's underlying profitability better it's once gross income has been adjusted for certain items.3. Operating profit margin is a profitability ratio that measures what percentage of total revenues is made up by operating income. It considers not only the cost of production, but also other costs associate with running a business, such as administrative and marketing costs.4. Net profit margin is the percentage of revenue left after all expenses have been deducted from sales. It considers all the costs related to running a business, including the direct costs of producing offerings and the indirect costs, such as salaries, rents, utilities, and so on.So, the answer would be net profit margin.