Royce Corp's Sales Last Year Were $280,000,and Its Net Income

question 25

Multiple Choice

Royce Corp's sales last year were $280,000,and its net income was $23,000.What was its profit margin?

• A)7.41%
• B)7.80%
• C)8.21%
• D)8.63%
• E)9.06%

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Definitions:

Money Supply

The total fund of money available in an economy at a fixed point in time.

Interest Rate

The cost of borrowing money, expressed as a percentage of the amount borrowed, paid by the borrower to the lender for the use of their funds.

Aggregate Demand

The comprehensive demand for every type of good and service within an economy, identified at a given price level and time period.

Investment

is the allocation of resources, usually money, in expectation of earning a future return.