The Poole Company Reported the Following Income for Year 2

The Poole Company reported the following income for Year 2: $\begin{array}{|l|r|}\hline & \\\hline \text { Sales } & \$ 30,000 \\\hline \text { Cost of goods sold } & \underline { 8,000} \\\hline \text { Gross margin } & \$ 22,000 \\\hline \text { Selling and administrative expense } & \underline { 10,000} \\\hline \text { Operating income } & \$ 12,000 \\\hline \text { Interest expense } & \underline { 4,000} \\\hline \text { Income before taxes } & \$ 8,000 \\\hline \text { Income tax expense } &\underline { 2,500} \\\hline \text { Net income } & \underline { \$ 5,500} \\\hline\\\hline\end{array}$ What is the company's net margin (rounded to the nearest whole percent) ?

A) 73%
B) 40%
C) 18%
D) 27%