Answer
A - 6%
Work Step by Step
Profit margin is calculated by dividing net income by net sales. (24,000 / 400,000) = .06 or 6%
Accounting: Tools for Business Decision Making, 5th Edition
by Kimmel, Paul D.; Weygandt, Jerry J.; Kieso, Donald E.
Published by
Wiley
ISBN 10:
1118128168
ISBN 13:
978-1-11812-816-9
Chapter 13 - Financial Analysis: The Big Picture - Self-Test Questions - Page 726: 11
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