A company had a profit margin of 12%.If net income equaled $450,000 and average total assets equaled $600,500,how much were sales?
A)$1,050,500
B)$126,060
C)$72,060
D)$54,000
E)$3,750,000

Name: A company had a profit margin of 12%.If net income equaled $450,000 and average total assets equaled $600,500,how much were sales? A)$1,050,500 B)$126,060 C)$72,060 D)$54,000 E)$3,750,000
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Question

Quizplus · Accepted Answer

Profit margin = (Net income / Sales) x 100%
12% = ($450,000 / Sales) x 100%
Sales = $450,000 / 0.12
Sales = $3,750,000

A Company Had a Profit Margin of 12