Question

Damita company reported net income of $48,025 and net sales of $425,000 for the current year. calculate the company's profit margin.

Answer 1

Damita company reported net income of $48,025 and net sales of $425,000 for the current year.calculate the company's profit margin.

We have
net sales = $425,000
and
net income=$48,025
profit margin=net income/net sales * 100
=48025/425000 * 100 = 11.3%
Ans = profit margin = 11.3%