A company has net income of $130,500. Its net sales were $1,740,000 and its total assets were $2,750,000. Its profit margin equals 7.5%.

Question

Yosef Jackson

Business

22 May, 23:20

A company has net income of $130,500. Its net sales were $1,740,000 and its total assets were $2,750,000. Its profit margin equals 7.5%.

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Amaris · Answer 1

True

Explanation:

The profit margin calculation is shown below:

= (Net income : net sales) * 100

= ($130,500 : $1,740,000) * 100

= 7.5%

We simply divide net income by net sales in order to achieve the gross profit margin. This indicates a correlation between net income or net income and net sales.

All other information provided is irrelevant. Therefore, it was ignored