A profit margin of 10% indicates that: Multiple Choice for every $1 in net income, the company generates $0.10 in net sales. for every $1 in net income, the company generates $0.90 in net sales. for every $1 in net sales, the company generates $0.10 in net income. for every $1 in net sales, the company generates $0.90 in net income.

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Answer:

A profit margin of 10% indicates that:

for every $1 in net sales, the company generates $0.10 in net income.

Explanation:

Company B's profit margin measures the degree to which the company makes extra money after deducting the expenses from the sales revenue.  When expressed as a percentage, it indicates how many cents of profit has been generated for each dollar of sales.