Question

A company earned $7,030 in net income for October. Its net sales for October were $18,500. Its profit margin is: Group of answer choices 38% 3.8% 26% 263%

Answer 1

Profit margin = 0.38 or 38%

Step-by-step explanation:

Given the information:

Income of the october, Profit = $7030

Net sales = $18500

Use below formula to find the profit margin:

Profit margin = net income / net sales

Profit margin = 7030 / 18500

Profit margin = 0.38 or 38%