Jamie's Natural Foods had net sales of $329,500 and the cost of goods sold were $192,400. Operating expenses were $89,672 and owner's equity is $328,775. 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 the cost of goods sold and operating expenses from net sales: ($329,500 - $192,400 - $89,672) = $47,428. Thus, the net profit margin is ($47,428 / $329,500) * 100 = 14.4%.

Jamie's Natural Foods Had Net Sales of $329,500 and the Cost