A Company Had a Profit Margin of 5

question 7

Multiple Choice

A company had a profit margin of 5%.If net income equaled $83,000 and average total assets equaled $45,000,how much were net sales?

• A)$4,150
• B)$2,250
• C)$1,660,000
• D)$6,400
• E)$128,000

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Definitions:

Residential Hot Water Heater

A device used in homes to heat water for domestic purposes such as bathing and cooking.

Selling Price

The amount a product or service is sold for, which could include profit margins beyond the cost of goods.

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Manufacturer's Markup Percent

The percentage added to the cost of goods by manufacturers to determine the selling price.