Question

5. If a company had $15,000 in net income for the year, and its sales were $300,000 for the same year, what is its profit margin

Answer 1

Answer:

5%

Explanation:

Net income is $15,000

Sales is $300,000

The profit margin can be calculated as follows

= 15,000/300,000

= 0.05×100

= 5%

Profit margin is 5%