Question

Shawn knows his company's profit margin on sales and its net sales amount. Given these values, Shawn can determine the company's ________ its net sales by its profit margin on sales.

A. net income by multiplying
B. return on assets by dividing
C. net income by dividing
D. return on assets by multiplying

Answer 1

The correct option is A. net income by multiplying. To determine the company's net income, we need to multiply the company's net sales by its profit margin on sales.

Step-by-step explanation:

The correct option is A. net income by multiplying.

To determine the company's net income, we need to multiply the company's net sales by its profit margin on sales.

Net income is the amount of money a company has left over after subtracting all expenses from its total revenue.

By multiplying net sales by the profit margin on sales, we can calculate the net income, which represents the company's profit.