q33 Suppose a firm had sales of 210000 and net income of 250

q3.3)

Suppose a firm had sales of $210,000 and net income of $25,000 for the year. What is the profit margin on sales ratio? Calculate the profit margin on sales ratio. Begin by selecting the formula you will use to calculate the profit margin on sales ratio. Then enter the amounts in the formula and calculate the ratio. (Round the ratio to two decimal places.) x 100 - Profit margin on sales ratio X 100

Solution

Net income/ Sales *100= Profit margin on sales ratio 25000/ 210,000 *100= 11.91%(Approx).