Panhead's Bike Shop had net sales of $382,500 and the cost of goods sold were $172,300. Operating expenses were $107,645 and owner's equity is $437,645. Calculate the net profit margin. (Round to the nearest tenth)

Question

Quizplus · Accepted Answer

Net profit margin is calculated as (Net Income / Net Sales) * 100. Net Income is found by subtracting both the cost of goods sold and operating expenses from net sales: ($382,500 - $172,300 - $107,645) = $102,555. Then, ($102,555 / $382,500) * 100 = 26.8%.

Panhead's Bike Shop Had Net Sales of $382,500 and the Cost