Artist Company has net sales of $350,000 and cost of goods sold is $275,000. If all other expenses equal $40,000, the company's profit margin is 10%.

Question

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Profit margin is calculated as (Net Income / Net Sales) x 100. Net Income is Net Sales ($350,000) minus Cost of Goods Sold ($275,000) and other expenses ($40,000), which equals $35,000. The profit margin is ($35,000 / $350,000) x 100 = 10%.

Artist Company Has Net Sales of $350,000 and Cost of Goods