Martinez Corporation reported Net sales of $765,000 and Net income of $142,000.The Profit margin is:
A)539.0%.
B)5.39%.
C)81.4%.
D)1.86%.
E)18.56%.

Name: Martinez Corporation reported Net sales of $765,000 and Net income of $142,000.The Profit margin is: A)539.0%. B)5.39%. C)81.4%. D)1.86%. E)18.56%.
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Question

Quizplus · Accepted Answer

The profit margin is calculated by dividing Net income by Net sales and then multiplying by 100 to get a percentage. So, ($142,000 / $765,000) * 100 = 18.56%.

Martinez Corporation Reported Net Sales of $765,000 and Net Income