Asked by
Katie Lyons
on Oct 22, 2024
Verified
Calculate net margin from the following information: Sales $250,000
Net Income $100,000.
A) 50%
B) 60%
C) 40%
D) 30%
E) 80%
Net Margin
A profitability metric calculated as net income divided by revenue, expressed as a percentage, indicating how much of each dollar in revenues is translated into profits.
Sales
The activity or business of selling goods or services to customers.
Net Income
The amount of money a company has left after all expenses, taxes, and costs have been subtracted from total revenue.
- Learn to assess and carry out computations of financial ratios critical for evaluating liquidity, profitability, and efficiency measures.
Verified Answer
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Learning Objectives
- Learn to assess and carry out computations of financial ratios critical for evaluating liquidity, profitability, and efficiency measures.