Royce Corp's sales last year were $280,000,and its net income was $23,000.What was its profit margin?
A)7.41%
B)7.80%
C)8.21%
D)8.63%
E)9.06%

Question

Quizplus · Accepted Answer

Profit margin is calculated by dividing the net income by the total sales and multiplying by 100. 
Profit margin = (Net income / Total sales) x 100 
Substituting the given values, 
Profit margin = (23,000 / 280,000) x 100 
Profit margin = 0.0821 x 100 = 8.21% 
Therefore, the best choice is C) 8.21%.

Royce Corp's Sales Last Year Were $280,000,and Its Net Income