Martinez Corporation reported Net sales of $765,000 and Net income of $142,000. The Profit margin is:
A) 81.4%.
B) 1.86%.
C) 18.56%.
D) 5.39%.
E) 539.0%.

Question

Quizplus · Accepted Answer

To find the profit margin, we need to divide the net income by the net sales and multiply by 100 to get a percentage:

Profit margin = (Net income / Net sales) x 100

Profit margin = ($142,000 / $765,000) x 100

Profit margin = 0.1856 x 100

Profit margin = 18.56%

Therefore, the correct answer is C) 18.56%.

Martinez Corporation Reported Net Sales of $765,000 and Net Income