Question

The profit margin multiplied by the sales revenue is know as?

The profit margin multiplied by the sales revenue is know as?
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Answer #1
Solution:
Profit margin is a percentage of profit earned on Sales revenue made by the company
It is calculated by dividing Net Income/Sales Revenue
Formula to calculate Profit Margin :
Profit Margin = Net Income/Sales
So if Profit margin is multiplied by sales revenue we will get Net Income
Net Income is calculated by deducting Expenses from Sales Revenues, hence Net income
is excess of Sales over Expenses.
Thus Profit margin mutiplied by Sales Revenue is known as Net Income
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