Royce Corp's sales last year were $280,000,and its net income was $23,000.What was its profit margin?
A) 6.41%
B) 6.98%
C) 8.21%
D) 10.02%
E) 6.57%

Question

Quizplus · Accepted Answer

Profit margin is calculated by dividing the net income by the total revenue and expressing the result as a percentage. Therefore, profit margin = (Net Income / Total Revenue) x 100. 
In this case, the profit margin = (23,000 / 280,000) x 100 = 8.21%. Therefore, the best choice is C.

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