Question

A company earned $3,000 in net income for October. Its net sales for October were $10,000. Its profit margin is:

A.3%.
B.30%.
C.33%.
D.333%.
E.$7,000.

Answer 1

Option B.

Step-by-step explanation:

Given information:

Net income = $3,000

Net sales = $10,000

Profit margin formula:

`\text{Profit margin}=\frac{\text{Net income}}{\text{Net sales}}* 100`

Substitute given values in the above formula.

`\text{Profit margin}=(3000)/(10000)* 100`

`\text{Profit margin}=30`

The profit margin is 30%. Therefore, the correct option is B.