A firm's net profit margin increased from 3.2% to 3.8% from 2014 to 2015.If total sales increased from $312 million in 2014 to $345 million in 2015,what was the increase in net income?
A)$19 million
B)$21 million
C)$3 million
D)$2 million
E)$13 million

Question

Quizplus · Accepted Answer

The increase in net income can be calculated by finding the net income for each year and then subtracting the two. For 2014, the net income is 3.2% of $312 million, which is $9.984 million. For 2015, the net income is 3.8% of $345 million, which is $13.11 million. The increase in net income from 2014 to 2015 is $13.11 million - $9.984 million = $3.126 million, which rounds to $3 million.

A Firm's Net Profit Margin Increased from 3