Upseedaisees is popular loungewear that prides itself on its versatility. Last year, its net sales were $1,450,000 with cost of goods of $353,000. Taxes totalled $61,650. The company's expenses totalled $960,000. Calculate the company's net profit margin.

Question

Quizplus · Accepted Answer

Net profit margin is calculated as (Net Profit / Net Sales) * 100. Net Profit = Net Sales - Cost of Goods - Expenses - Taxes = $1,450,000 - $353,000 - $960,000 - $61,650 = $75,350. Net Profit Margin = ($75,350 / $1,450,000) * 100 = 5.2 percent.

Upseedaisees Is Popular Loungewear That Prides Itself on Its Versatility