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The gross margin ratio: Multiple Choice Should be greater than 1 for merchandising companies. Indicates the percent of sales revenue remaining after covering the cost of the goods sold. Is a measure of liquidity and should exceed 2.0 to be acceptable. Is also called the net profit ratio. Is also called the profit margin.

Respuesta :

Answer:

Indicates the percent of sales revenue remaining after covering the cost of the goods sold.

Explanation:

As we know that

Gross margin = Sales revenue - cost of goods sold

And the gross margin ratio is

= Gross margin ÷ sales revenue × 100

So it shows the amount of gross margin as the sales percentage

Therefore the above represent the answer

Hence, the same is to be relevant

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