Crosswhite Corporation's sales last year were $1,270,000, its gross margin was $400,000, its net operating income was $53,769, and its net income was $26,500. The company's net profit margin percentage is closest to:
A) 31.5%
B) 3.2%
C) 4.2%
D) 2.1%

Question

Quizplus · Accepted Answer

The net profit margin percentage is calculated as (Net Income / Sales) * 100. For Crosswhite Corporation, it is ($26,500 / $1,270,000) * 100 = 2.1%.

Crosswhite Corporation's Sales Last Year Were $1,270,000, Its Gross Margin