Question

A company's net profit Margins M, expressed as a percent is determined using the formula M = 100l/R where I represent net income and R represent net Revenue. Calculate the net profit margin for a company with a net income of $254,000 and a net revenue of $7,548,000. Round to the nearest hundredth of a percent

Answer 1

3.37%

Step-by-step explanation:

M = 100l/R.

M = 100 x $254,000 / $7,548,000 = 3.3651...

Rounding to the nearest hundredth, we get the net profit margin is 3.37%.