The ratio of earnings to sales for a given time period is a firm's profit margin.

a. true

b. false

The answer is: True

Explanation:

The profit margin of a business can be calculated using the following formula:

gross profit margin = (gross profit / net sales ) x 100net profit margin = (net income / net sales) x 100

The difference between them is that the gross profit margin only considers the difference between net sales and COGS, while the net profit margin includes other expenses.

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