Compute Profit Margin Ratio Given the Following Information

question 24

Multiple Choice

Compute profit margin ratio given the following information.

• A) 6.63%
• B) 7.03%
• C) 93.8%
• D) 6.2%
• E) 88.33%

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Definitions:

Consideration

A value that is exchanged between parties in a contract, making the agreement legally binding.

Promissory Estoppel

A legal principle that prevents a party from withdrawing a promise made to another party, if the latter has reasonably relied on that promise to their detriment.

Hamer v. Sidway

A landmark case in contract law regarding forbearance as consideration, where a promise not to do something can be as legally binding as a promise to do something.

Unforeseen Circumstances

Situations or events that could not have been predicted or expected, often leading to disruptions in agreements or plans.