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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) Γ— 100. It indicates the efficiency of core operations before interest and tax.

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