Dean Corporation reported net income $58,000, net sales $500,000, and average assets $800,000 for 2020. The 2020 profit margin was:

Name: Dean Corporation reported net income $58,000, net sales $500,000, and average assets $800,000 for 2020. The 2020 profit margin was:
Brand: Quizplus
Rating: 4.8 (58 reviews)

Question

Quizplus · Accepted Answer

The formula for calculating profit margin is: (Net Income / Net Sales) x 100
Using the numbers provided:
Profit Margin = (58,000 / 500,000) x 100
Profit Margin = 0.116 or 11.6%
Therefore, the answer is choice B.

Dean Corporation Reported Net Income $58,000, Net Sales $500,000, and Average