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This ratio is that determines general profitability since it is expected that the ratio would be quite high so as to cover not only the remaining costs but also to a … indicates the net margin earned in a sa Materials used, labor, factory overheads, and office and selling expenses are all Profitability ratios give some yardstick to measure the profit in relative terms with reference to sales, a Ratios that are calculated to judge the financial position of the organization from short-term as well as long-term solv