The Following Information Pertains to Soho Company $\text { Assets }$

The following information pertains to Soho Company.Assume that all statement of financial position amounts represent both average and ending balance figures.Assume that all sales were on credit. $\text { Assets }$
$\begin{array}{lr}\text { Property, plant and equipment } & \$ 210,000 \\\text { Inventory } & 20,000 \\\text { Accounts receivable (net) } & 25,000 \\\text { Cash and short-term investments } & 45,000 \\\hline \text { Total Assets } & \$ 300,000\end{array}$

$\text { Equity and Liabilities }$
$\begin{array}{lr}\text { Shareholders' equity—ordinary } & \$ 160,000 \\\text { Non-current liabilities } & 90,000 \\\text { Current liabilities } & 50,000 \\\quad \text { Total Equity and Liabilities } & \$ 300,000\end{array}$

$\text { Income Statement }$
$\begin{array}{lr}\text { Sales } & \$ 120,000 \\\text { Cost of goods sold } & 66,000 \\\text { Gross margin } & 54,000 \\\text { Operating expenses } & 30,000 \\\text { Net income } & \$ 24,000\end{array}$

$\begin{array}{lr}\text { Number of shares of ordinary shares } & 6,000 \\\text { Market price of ordinary shares } & \$ 20 \\\text { Dividends per share } & 50\end{array}$

What is the profit margin for Soho?

A) 45.0%
B) 40.0%
C) 20.0%
D) 17.5%