A company had a profit margin of 8%.If net income equaled $40,000 and average total assets equaled $332,500,how much were net sales?
A)$3,200
B)$500,000
C)$26,600
D)$4,156,250
E)$372,500

Question

Quizplus · Accepted Answer

The profit margin is calculated as Net Income / Net Sales. Given a profit margin of 8% and a net income of $40,000, we can set up the equation: $40,000 / Net Sales = 0.08. Solving for Net Sales gives us $500,000.

A Company Had a Profit Margin of 8