Final answer:
Pamela Co., with a net margin ratio of 7.7%, has the best net margin ratio compared to Rachel Co.'s 5.4% and Susan Co.'s 6.3%, making it the most profitable relative to its sales.
Step-by-step explanation:
The student has asked which company appears to have the best net margin ratio based on the following data: Pamela Co. = 7.7%, Rachel Co. = 5.4%, Susan Co. = 6.3%. To determine which company has the best net margin ratio, we simply compare the percentages. The net margin ratio measures the percentage of net income to sales, indicating how much profit a company makes for every dollar of sales after all expenses are paid.
In this case, Pamela Co. has the highest net margin ratio at 7.7%, meaning it's the most profitable relative to its sales when compared to Rachel Co. and Susan Co. Therefore, Pamela Co. appears to have the best net margin ratio among the three companies.