Last month, Korey’s Comics had $4,350 in net sales with a gross profit of $3,320 and a net income of $1,850. Calculate Korey’s net profit margin.
Answer
A
42.5%
B
55.7%
C
76.3%
D
179.5%
Explanation
Net profit margin is net income divided by net sales, multiplied by 100. Korey’s margin is ($1,850 ÷ $4,350) × 100 ≈ 42.5%, so the correct choice is 42.5%.
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