Rappaport Corp.'s sales last year were $320,000,and its net income after taxes was $23,000.What was its profit margin on sales?
A)6.49%
B)6.83%
C)7.19%
D)7.55%

Name: Rappaport Corp.'s sales last year were $320,000,and its net income after taxes was $23,000.What was its profit margin on sales? A)6.49% B)6.83% C)7.19% D)7.55%
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Question

Quizplus · Accepted Answer

Profit margin = (Net Income / Sales) x 100%
Profit margin = (23,000 / 320,000) x 100%
Profit margin = 0.071875 x 100%
Profit margin = 7.19%