Problem

Use the following information to compute profit margin for each separate company a through...

Use the following information to compute profit margin for each separate company a through e.

 

Net Income

Net Sales

a.

$ 5,390

$ 44,830

b.

87,644

398,954

c.

93,385

257,082

d.

 $55,234

$1,458,999

e.

70,158

435,925

Which of the five companies is the most profitable according to the profit margin ratio? Interpret that company’s profit margin ratio.

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