Question

A company reported net income of 5,780 for October. Its net sales for October were17,000. What is the company's profit margin?

1) 32%
2) 34%
3) 36%
4) 38%

Answer 1

The company's profit margin is 34%.

Step-by-step explanation:

The company's profit margin can be calculated by dividing its net income by its net sales and multiplying by 100. In this case, the company's net income is $5,780 and its net sales are $17,000. Therefore, the profit margin is ($5,780/$17,000) * 100 = 33.94%.

Since the answer options are given as percentages, we can round the profit margin to the nearest whole number. The rounded profit margin is 34%. Therefore, the correct answer is option 2) 34%.