A Company Had $7,000,000 in Net Income for the Year

question 41

Multiple Choice

A company had $7,000,000 in net income for the year.Its net sales were $15,200,000 for the same period.Calculate its profit margin.

• A)85.4%.
• B)117.1%.
• C)53.9%.
• D)217.1%.
• E)46.1%.

Understand how the number of units sold impacts a company's break-even point.

Learn the process of determining the break-even point.

Comprehend the relationship between the contribution margin ratio and the coverage of fixed expenses.

Apply the concept of unit contribution margin to estimate profits at various sales volumes.

---

Definitions:

Radio Sermons

This term describes the broadcasting of religious messages, teachings, or services over the radio, reaching a wider audience beyond traditional churchgoers.

Charles Coughlin

A controversial Roman Catholic priest who became a popular radio broadcaster in the 1930s and 1940s, known for his political and economic opinions.

New Deal

A series of programs, public work projects, financial reforms, and regulations enacted by President Franklin D. Roosevelt in the United States during the 1930s to restore prosperity during the Great Depression.

Popular Front

A broad coalition of different political groups, often including communists and socialists, united for a common goal, especially seen in France and Spain in the 1930s against fascism.