Question

Martinez Corporation reported net sales of $782,000, net income of $125,000, and total assets of $7,804,089. The profit margin is:

Answer 1

Answer:

the profit margin is 16%

Explanation:

The computation of the profit margin is shown below:

Profit margin is

= Net income ÷ Sales × 100

= $125,000 ÷ $782,000 × 100

= 16%

Hence, the profit margin is 16%

It shows the relationship between the net income and the sales also it is expressed in percentage form

We simply applied the above formula so that the correct percentage could come