Question

Last year, Rusty’s Tools experienced $67,550 in net sales, creating a gross profit of $50,338. If Rusty had a total operating expense of $35,200 last year, what was his net profit margin?

Answer 1

Answer:

22.4%

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Answer 2

Answer:

Net profit margin is 22.41%

Step-by-step explanation:

Rusty's Tool experienced $67550 in net sales, creating a gross profit of $50338.

If Rusty had a total operating expense of $35200 then we have to find the net profit margin.

Since profit $50338 includes the operating expense of $35300 then net profit will be = $50338 - $33500 = $15138

Now the selling price is given as $67550.

So profit margin will be = $\frac{\text{Net profit}}{\text{Selling price}}\times (100)$

Profit margin = $\frac{15138}{67550}\times 100=22.41$%

Therefore, answer is profit margin = 22.41%