Company X has net sales revenue of $780,000,cost of goods sold of $343,200,and all other expenses of $327,600.The net profit margin is closest to:
A) 0.32.
B) 0.56.
C) 0.86.
D) 0.14.

Question

Quizplus · Accepted Answer

Net profit margin is calculated as (Net Income / Net Sales Revenue). Net Income = Net Sales Revenue - Cost of Goods Sold - Other Expenses = $780,000 - $343,200 - $327,600 = $109,200. Net profit margin = $109,200 / $780,000 = 0.14.

Company X Has Net Sales Revenue of $780,000,cost of Goods