A Company Had $7,000,000 in Net Income for the Year

question 275

Multiple Choice

A company had $7,000,000 in net income for the year.Its net sales were $11,200,000 for the same period.Calculate its profit margin.

• A)17.5%
• B)28%
• C)62.5%
• D)160%
• E)$18.2 million

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Definitions:

Power Divider

A component in a vehicle's drivetrain that divides the engine's power between the front and rear axles for improved traction.

Rear Axle Half-Shafts

Part of a vehicle's drive system, transferring power from the differential to the wheels, typically found in rear-wheel or four-wheel drive vehicles.

Variable Costs

Costs that change in proportion to the level of goods or services produced.

Quantity Of Output

The measure of production volume produced by a business, sector, or economy within a specified time frame.