A Company Had $9,000,000 in Net Income for the Year

question 53

Multiple Choice

A company had $9,000,000 in net income for the year. Its net sales were $13,200,000 for the same period. Calculate its profit margin.

• A) 17.5%.
• B) 28.0%.
• C) 62.5%.
• D) 160.0%.
• E) 68.2%

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Definitions:

Antitrust Policy

Regulations and laws designed to promote competition and prevent monopolies by restricting business practices that could limit market accessibility.

Monopoly Power

The ability of a firm to set or influence prices within a market because it is the sole supplier of a product or service.

Tacit Collusion

An unspoken, implicit agreement among competitors to avoid certain competitive behaviors, like price undercutting, to maintain market stability or prices.

Gardeners

Individuals or businesses specialized in the practice of growing and maintaining plants and lawns for aesthetic and functional purposes.