Answer:
option (c) 2.1%
Explanation:
Data provided in the question:
Crosswhite Corporation's sales last year = $1,270,000
Gross margin = $400.000
Net operating income = $53,769
Net income = $26,500
Now,
Net profit margin = [ Net income ÷ Sales ] × 100%
therefore,
Net profit margin = [ $26,500 ÷ $1,270,000 ] × 100%
or
Net profit margin = [ $26,500 ÷ $1,270,000 ] × 100%
or
Net profit margin = 0.02086 × 100%
or
Net profit margin = 2.086% ≈ 2.1%
Hence,
the answer is option (c) 2.1%