Akers Corporation reported net income $36,000; net sales $480,000; and average assets $800,000 for 2017. What is the 2017 profit margin?
A) 4.5%
B) 7.5%
C) 13.3%
D) 60.0%

Name: Akers Corporation reported net income $36,000; net sales $480,000; and average assets $800,000 for 2017. What is the 2017 profit margin? A) 4.5% B) 7.5% C) 13.3% D) 60.0%
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The profit margin is calculated as (Net Income / Net Sales) * 100. For Akers Corporation, it is ($36,000 / $480,000) * 100 = 7.5%.

Akers Corporation Reported Net Income $36,000; Net Sales $480,000; and Average