Dean Corporation reported net income $58000 net sales $500000 and average assets $800000 for 2017. The 2017 profit margin was:
A) 5.8%.
B) 11.6%.
C) 62.5%.
D) 160%.

Question

Quizplus · Accepted Answer

Profit margin is calculated by dividing net income by net sales. Therefore, Profit margin = (Net income / Net sales) x 100. Plugging in the values, Profit margin = (58000 / 500000) x 100 = 11.6%.

Dean Corporation Reported Net Income $58000 Net Sales $500000 and Average