A Company Has a Profit Margin of 5

question 173

Multiple Choice

A company has a profit margin of 5%.If net income is equal to $83,000 and average total assets is equal to $45,000,how much are net sales?

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

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Definitions:

Safety Gear

Equipment or clothing designed to protect individuals from injury or harm, especially in hazardous work environments or activities.

Trade Name

A term that is used to indicate part or all of a business’s name and that is directly related to the business’s reputation and goodwill. Trade names are protected under the common law (and under trademark law, if the name is the same as the firm’s trademark).

Business's Name

The official legal name under which a company operates and is recognized.

Fanciful Trademarks

Trademarks that consist of invented or fictional words or logos not related to the product or service they represent, offering the strongest level of trademark protection.