Example 7.1
The information below is used for the following problems. Jones Sales Company had:
$\begin{array}{lr}
\text { Net Sales } & 200000 \
\text { Gross Profit } & 90000 \
\text { Operating Profit } & 50000 \
\text { Net Income } & 35000
\end{array}$

-Refer to Example 7.1. Jones Sales Company's profit margin is:
A) 17.5%.
B) 25%.
C) 45%.
D) 70%.

Question

Example 7.1
The information below is used for the following problems. Jones Sales Company had:
 $\begin{array}{lr}
\text { Net Sales } & 200000 \
\text { Gross Profit } & 90000 \
\text { Operating Profit } & 50000 \
\text { Net Income } & 35000
\end{array}$

-Refer to Example 7.1. Jones Sales Company's profit margin is:
A) 17.5%.
B) 25%.
C) 45%.
D) 70%.

Quizplus · Accepted Answer

The profit margin is calculated as Net Income divided by Net Sales, which is $ \frac{35000}{200000} = 0.175 $ or 17.5%.

Example 71 the Information Below Is Used for the Following Problems

Example 71
the Information Below Is Used for the Following Problems