Ratios: Profit Margin

Concept: Ratios: Profit Margin

4m

Problem: If XYZ Company has net sales of $500,000 and net income of $25,000, the profit margin is:

2m

Problem: A company has income before taxes of $100,000. Net sales are $400,000 and gross profit is $300,000. What is the profit margin, assuming the company has a 40% tax rate?

3m