Marino Company has provided the following information: Net sales,$480,000
Net income,$24,000
Average total assets,$200,000
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What is Marino's net profit margin?
A)75%
B)12%
C)42%
D)5%

Question

Quizplus · Accepted Answer

Net profit margin is calculated by dividing net income by net sales, then multiplying by 100 to get a percentage.

Net profit margin = (Net income / Net sales) x 100
Net profit margin = (24,000 / 480,000) x 100
Net profit margin = 0.05 x 100
Net profit margin = 5%

Therefore, the correct answer is D.

Marino Company Has Provided the Following Information: Net Sales,$480,000