A firm has the following financial statement data: Sales = $2,000, COGS = $800, Operating Expenses = $600, and Taxes = $400. What is the firm's profit margin?

Question

Quizplus · Accepted Answer

The firm's profit margin is calculated as Net Income divided by Sales. Net Income = Sales - COGS - Operating Expenses - Taxes = $2,000 - $800 - $600 - $400 = $200. Profit Margin = ($200 / $2,000) * 100% = 10%.

A Firm Has the Following Financial Statement Data: Sales =