Question

Expedia and Priceline compete as online travel agencies. Historically, Expedia has focused more on flights, whereas Priceline has focused on hotel bookings. The following amounts were reported by the two companies in 2015 Net Income Total ssets Liabilities Revenues Total Total (in millions) $723 $15,504 Expedia Priceline $10,574 8,625 $6,672 9,224 2,551 17,421 Required 1. Calculate each company's net profit margin expressed as a percent. (Round your answers to 1 decimal place.) Expedia Priceline Net Profit Margin 2. Which company has generated a greater return of profit from each revenue dollar? Expedia Priceline

Answer 1

1)			Expedia	Priceline
	Net profit margin	Net income/Total revenues	10.84%	27.66%
			=723/6672	=2551/9224
2)	Select "Priceline"