The Poole Company Reported the Following Income for Year 2

The Poole Company reported the following income for Year 2:
$\begin{array}{lr}\text { Sales}&\$30,000\\\text {Cost of goods sold }&8,000\\\text { Gross margin}&\$22,000\\\text {Selling and administrative expense }&10,000\\\text { Operating income}&\$12,000\\\text { Interest expense}&4,000\\\text {Income before taxes }&\$8,000\\\text {income tax expense }&2,500\\\text {Net income }&\$5,500\\\end{array}$

What is the company's net margin? (Rounded to the nearest whole percent.)

A) 73%
B) 40%
C) 18%
D) 27%