Carmen wants to determine the profit margin ratio for her company so she can see how much of the company sales is turned into profit. She knows her net profit is $20,000 and her sales are $100,000. How would she calculate the profit margin ratio?
A. Subtract the company’s net profit from the sales
B. Add the company’s net profit and sales together
C. Divide the company’s sales in half and add the net profit
D. Divide the company’s net profit by sales
