1.How much profit a business makes on each sale can be measured using:
Return on investment
Operating margin
Inventory turnover
Gross margin
2.Inventory is a use of cash.
True
False
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Answer 1)
Gross Margin = Gross Profit / Sales, here we calculate the profit per $ of sale, which is being asked in the question.
Therefore the correct answer is option 4
Answer 2)
The statement is TRUE. as Investory required to be purchased. ans then sale of inventory is the source of cash by inventory in itself is a use of cash.
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