Use the following information for questions:
Consider the following income statement data for Milan Inc.: $\begin{array} { l }&2011&2010\
\text {Sales revenue }&\$97,000&\$86,200\
\text { Less: Cost of goods sold}&45,600&53,400\
\text {Gross profit }&51,700&32,800\
\text { Less: Selling and administration costs Income before }&22,500&18,300\
\text {income tax }&29,200&14,500\
\end{array}$

-What was the 2011 net profit margin before income tax closest to?
A)16.8%
B)23.1%
C)30.0%
D)53.1%

Question

Use the following information for questions:
Consider the following income statement data for Milan Inc.: $\begin{array} { l  }&2011&2010\
 \text {Sales revenue }&\$97,000&\$86,200\
 \text { Less: Cost of goods sold}&45,600&53,400\
 \text {Gross profit }&51,700&32,800\
 \text { Less: Selling and administration costs Income before }&22,500&18,300\
 \text {income tax }&29,200&14,500\
\end{array}$

-What was the 2011 net profit margin before income tax closest to?
A)16.8%
B)23.1%
C)30.0%
D)53.1%

Quizplus · Accepted Answer

The net profit margin before income tax for 2011 is calculated as Income before income tax divided by Sales revenue. For 2011, this is $ \frac{29,200}{97,000} \approx 30.1\%$, which is closest to 30.0%.

Use the Following Information for Questions: Consider the Following Income

Use the Following Information for Questions:
Consider the Following Income