question 37 junebug corporation reported net income $24,000; net sales $400,000; and average assets $600,000…
question 37 junebug corporation reported net income $24,000; net sales $400,000; and average assets $600,000 for 2021. what is the companys 2021 profit margin? o 4% o 40% o 67% o 6% 2 pts
Answer
Explanation:
Step1: Recall profit - margin formula
Profit margin = $\frac{\text{Net Income}}{\text{Net Sales}}\times100%$
Step2: Substitute given values
Net Income = $24000$, Net Sales = $400000$ Profit margin = $\frac{24000}{400000}\times100%$
Step3: Calculate the result
$\frac{24000}{400000}\times100%=0.06\times100% = 6%$
Answer:
6%