What does EPS represent as a profit measure?

Earnings Per Share (EPS) is a critical financial metric that represents a company's profitability on a per-share basis. It is calculated by taking the net income of a company—after all expenses, taxes, and costs have been deducted—and dividing it by the number of common shares outstanding. This measure allows investors to understand how much profit a company generates for each share of its stock, which is crucial for evaluating a company's financial performance and comparing it with that of other firms in the industry.

When assessing the other options, it's evident that they do not accurately reflect the definition of EPS. The first option describes price per unit sold, which relates to sales efficiency rather than profitability. The third option about total revenue divided by expenses pertains to profitability ratios but does not match the specific calculation for EPS. The fourth option mentions net earnings before taxes, which is not the final net income figure used in the EPS calculation. Therefore, the option describing EPS as net income divided by common shares outstanding is the correct representation of this important profit measure.