From the Information Provided, Calculate Giuseppe's Profit Margin Ratio for Each

question 16

Essay

From the information provided, calculate Giuseppe's profit margin ratio for each of the three years. Comment on the results, assuming that the industry average for the profit margin ratio is 6% for each of the three years.
$\begin{array}{lrccc}&2017&2016&2015\\\text { Net income } & \$ 2,630 & \$ 2,100 & \$ 1,850 \\\text { Net Sales } & 36,500 & 32,850 & 31,200 \\\text { Total Assets } & 400,000 & 385,000 & 350,000\end{array}$

---

Definitions:

Price Strategies

Various approaches businesses use to set prices for their products or services with the aim of maximizing profitability and market share.

Pure Competition

A market structure characterized by a large number of small firms, a homogeneous product, and free entry and exit, leading to price taking behavior.

Marginal Revenue

The increase in revenue that results from selling one additional unit of a product or service.

Horizontal Axis

The “left-right” or “west-east” measurement line on a graph or grid.