Answer:
The profit margin is 12.42%
Explanation:
Profit margin is the ratio of net profit to net sales. Net profit is the difference between the gross profit and the operating expenses. The gross profit is the difference between the net sales and cost of sales.
Net sales is the total sales less the sales return, discount and allowances.
As such, Net profit is the difference between the sales and all expenses.
Net profit = $312,000 - $2,000 - $4,000 - $184,000 - $84,000
= $38,000
Net sales = $312,000 - $2,000 - $4,000
= $306,000
Profit margin = $38,000/$306,000
= 12.42%