For Meters, Inc., refer to the following information to answer the question(s)below:
Meters, Inc., reported net sales of $874,916 and a net profit of $74,563 on its most recent income statement. The company's balance sheet shows total assets of $342,742 and total liabilities of $88,367.
-What is the net profit margin for Meters, Inc.?
A)8.5 percent
B)1.91:1
C)21.8 percent
D)29.3 percent

Question

Quizplus · Accepted Answer

Net profit margin is calculated as (Net Profit / Net Sales) * 100. For Meters, Inc., it is ($74,563 / $874,916) * 100 = 8.52%, which rounds to 8.5%.