Answer: C net income divided by net sales
Explanation:
Net profit margin is calculated by
dividing the net profits(income) by net sales, or by dividing the net income by
revenue realized over a given time period.
Profit margin is one of the commonly used profitability ratios to gauge the degree to which a company or a business activity makes money. It represents what percentage of sales has turned into profits. Simply put, the percentage figure indicates how many cents of profit the business has generated for each dollar of sale. For instance, if a business reports that it achieved a 35% profit margin during the last quarter, it means that it had a net income of $0.35 for each dollar of sales generated.
