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?

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%.

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