Bobbytronics Had $7,000,000 in Net Income for the Year

question 114

Multiple Choice

Bobbytronics had $7,000,000 in net income for the year.Its sales were $11,200,000.Calculate the profit margin.

• A) 17.5%.
• B) 62.5%.
• C) $34 million.
• D) $4.2 million.
• E) 28%.

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Definitions:

Equilibrium Price

The price at which the quantity of a product demanded by consumers and the quantity supplied by producers are equal.

Oat Bran

The outer layer of the oat grain, rich in dietary fiber and nutrients, often consumed for its health benefits, such as lowering cholesterol.

Cholesterol

A type of fat found in the blood that is necessary for building cells and producing certain hormones, but high levels can increase the risk of heart disease.

Rightward Shift

In economics, a graphical representation indicating an increase in supply or demand in a market, moving the curve to the right.