Which of the following statements about net profit margin is not correct?
A. Net profit margin indicates how much net income is earned for each dollar of revenue.
B. A company with a net profit margin of 15% is using 85% of each dollar of revenue to cover costs and expenses.
C. A company with a net profit margin of 8% may be evaluated differently depending upon which industry it is in.
D. If a company's net profit margin increases from 12% to 18% this would be considered an improvement in profitability.
E. All of these statements are correct.
Answer: E
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