A company has net income of $130,500. Its net sales are $1,740,000 and its average total assets are $2,750,000. Its profit margin equals 7.5%.
Profit margin = $130,500/$1,740,000 = 7.5%

Name: A company has net income of $130,500. Its net sales are $1,740,000 and its average total assets are $2,750,000. Its profit margin equals 7.5%. Profit margin = $130,500/$1,740,000 = 7.5%
Brand: Quizplus
Rating: 4.7 (30 reviews)

Question

Quizplus · Accepted Answer

The calculation of profit margin is correct and the result of 7.5% is accurate, therefore (A) is the correct answer.

A Company Has Net Income of $130,500