Example 7.2
The information below is used for the following problems.
Jones & Company had:
$\begin{array}{lr}
\text { Net sales } & 500000 \
\text { Gross profit } & 290000 \
\text { Operating profit } & 150000 \
\text { Net income } & 85000
\end{array}$

-Refer to Example 7.2. Jones & Company's profit margin is:
A) 17%.
B) 30%.
C) 58%.
D) 69%

Question

Example 7.2
The information below is used for the following problems.
Jones & Company had:
 $\begin{array}{lr}
\text { Net sales } & 500000 \
\text { Gross profit } & 290000 \
\text { Operating profit } & 150000 \
\text { Net income } & 85000
\end{array}$

-Refer to Example 7.2. Jones & Company's profit margin is:
A) 17%.
B) 30%.
C) 58%.
D) 69%

Quizplus · Accepted Answer

The profit margin is calculated as Net Income divided by Net Sales, then multiplied by 100 to get a percentage. So, $ \frac{85000}{500000} \times 100 = 17\%$.

Example 72 the Information Below Is Used for the Following Problems

Example 72
the Information Below Is Used for the Following Problems