The Poole Company Reported the Following Income for Year 2

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

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