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May 29, 2015

Homework Help: Profit margin ratio

Posted by Amber on Saturday, September 16, 2006 at 5:06pm.

Could someone please help?
I have to compute the profit margin for the following:

Net income Net Sales
A. $4,390 $44,830
B. 97,644 398,954
C. 111,385 257,082
D. 65,234 1,458,999
E. 80,158 435,925


I think (check your text) you use
Net Profit Margin = Net Income / Net Sales
There are other ways to calculate it too, but I think that's the basic formula to use here.
Sometimes revenues is used to mean net sales.

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