A company has net income of $130,500. Its net sales were $1,740,000 and its average total assets were $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 were $1,740,000 and its average total assets were $2,750,000. Its profit margin equals 7.5%. Profit margin = $130,500/$1,740,000 = 7.5%
Brand: Quizplus
Rating: 4.9 (51 reviews)

Question

Quizplus · Accepted Answer

The calculation of profit margin as $130,500/$1,740,000 = 7.5% is correct, therefore the statement is true.

A Company Has Net Income of $130,500