The Everest Company has income from operations of $80,000, invested assets of $500,000, and sales of $1,050,000. What is the profit margin?
A) 47.6%
B) 7.6%
C) 55.2%
D) 4.8%

Question

Quizplus · Accepted Answer

Profit margin is calculated as income from operations divided by sales.

Profit Margin = (Income from operations / Sales) x 100
Profit Margin = (80,000 / 1,050,000) x 100
Profit Margin = 7.6%

Therefore, the answer is B.

The Everest Company Has Income from Operations of $80,000, Invested