Refer to the following selected financial information from Gomez Electronics.

-Compute the company's profit margin for Year 2.
A)14.1%.
B)11.7%.
C)9.6%.
D)16.7%.
E)33.9%.

Name: Refer to the following selected financial information from Gomez Electronics. -Compute the company's profit margin for Year 2. A)14.1%. B)11.7%. C)9.6%. D)16.7%. E)33.9%.
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Question

Refer to the following selected financial information from Gomez Electronics.

-Compute the company's profit margin for Year 2. 
A)14.1%. 
B)11.7%. 
C)9.6%. 
D)16.7%. 
E)33.9%.

Quizplus · Accepted Answer

Profit margin is calculated by dividing net income by total revenue. Therefore, profit margin for Year 2 would be $96,600/$1,006,800 = 9.6%.

Refer to the Following Selected Financial Information from Gomez Electronics