A Company Had a Profit Margin of 8

question 33

Multiple Choice

A company had a profit margin of 8%.If net income equaled $40,000 and average total assets equaled $332,500,how much were net sales?

• A)$3,200
• B)$500,000
• C)$26,600
• D)$4,156,250
• E)$372,500

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Definitions:

Exchange Rate Risk

The risk that the value of an investment will decrease due to changes in the relative values of different currencies.

Transaction

An instance of buying or selling something; a business deal or action.

Japanese Yen

The official currency of Japan, widely used in international finance transactions.

U.S. Dollar

The official currency of the United States, widely used as a benchmark and reserve currency worldwide.