5
QuizMultiple Choice

Business Income Statements

Question 5 • TX-Money Matters A

Last year, Rusty’s Tools experienced $67,550 in net sales, creating a gross profit of $50,338. If Rusty had a total operating expense of $35,200 last year, what was his net profit margin?

Answer
A
22.4%
B
52.1%
C
74.5%
D
79.0%

Explanation

Subtract operating expenses from gross profit to find net profit: $50,338 − $35,200 = $15,138. Then divide net profit by net sales and convert to a percentage: ($15,138 ÷ $67,550) × 100 ≈ 22.4%. The correct choice is 22.4%.

AI-written and checked against the verified answer.

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