The profit margin ratio ____. shows how much gross profit business earns on every $1.00 of sales. focuses on the liquidity of the business. computed…

The profit margin ratio ____.

A. shows how much gross profit business earns on every $1.00 of sales. 

B. focuses on the liquidity of the business. 

C. computed by dividing net sales by net income. 

D. is often compared to industry average. 

(A was marked incorrect)