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    Question

    The ratio that measures the percentage of profit earned

    on sales before interest and tax is:
    A Net Profit Ratio Correct Answer Incorrect Answer
    B Operating Ratio Correct Answer Incorrect Answer
    C Operating Profit Ratio Correct Answer Incorrect Answer
    D Gross Profit Ratio Correct Answer Incorrect Answer

    Solution

    Operating Profit Ratio = (Operating Profit / Net Sales) ├Ч 100. It indicates the efficiency of core operations before interest and tax.

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