Question

Rapport Corp’s sales last year were $360,000 and it has a net

income after taxes of $23,000. What was the profit margin on
sales

Answer 1

The profit margin for Rapport Corp was calculated by dividing the net income of $23,000 by the sales of $360,000, resulting in a profit margin of 6.39%.

Step-by-step explanation:

The calculation of the profit margin on sales is a commonly used profitability metric in business that shows the percentage of sales that have turned into profits. It can be calculated by dividing the net income after tax by the total sales and then multiplying the result by 100 to get a percentage.

In the case of Rapport Corp, the profit margin on sales would be calculated as follows:

1. Divide the net income by the sales revenue: $23,000 / $360,000 = 0.0639.
2. Multiply by 100 to get a percentage: 0.0639 * 100 = 6.39%.

Therefore, the profit margin for Rapport Corp was 6.39%.