The Following Information Is Available for the Wooden Company From the Information Provided, Calculate Wooden's Profit Margin Ratio for

question 48

Essay

The following information is available for the Wooden Company:
$$\begin{array} { | l | r | r | r | } \hline & 2010 & 2009 & 2008 \\\hline \text { Net income } & \$ 2,630 & \$ 2,100 & \$ 1,850 \\\hline \text { Net Sales } & 36,500 & 32,850 & 31,200 \\\hline \text { Total assets } & 400,000 & 385,000 & 350,000 \\\hline\end{array}$$
From the information provided, calculate Wooden's profit margin ratio for each of the three years. Comment on the results, assuming that the industry average for the profit margin ratio is 6% for each of the three years.

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Definitions:

Demand Curve

A graph showing the relationship between the price of a good or service and the quantity of it that consumers are willing to purchase at different prices.

Price Sensitivity

The degree to which the demand for a product is affected by changes in its price.

Vertical

Refers to the integration of multiple stages of production and distribution within the same company.

Demand Curve

A graph showing the relationship between the price of a good and the quantity of that good that buyers are willing to purchase.