Asked by Emily Feasel on Jun 17, 2024
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A company had $6,992,000 in net income for the year.Its net sales were $15,200,000 for the same period.Calculate its profit margin.
A) 85.4%.
B) 117.1%.
C) 53.9%.
D) 217.1%.
E) 46.0%.
Profit Margin
A financial ratio calculated as net income divided by revenue, expressing the percentage of each dollar of revenue that remains as profit.
Net Income
The profit of a company after all expenses, taxes, and costs have been subtracted from total revenue.
Net Sales
The revenue from goods or services sold by a company after deducting returns, allowances for damaged or missing goods, and discounts.
- Calculate financial ratios, specifically profit margin, to analyze company financial performance.
Verified Answer
Learning Objectives
- Calculate financial ratios, specifically profit margin, to analyze company financial performance.
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