Use the following information to compute profit margin for each separate company a through e: Net Income

Question:

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

Net Income Net Sales Net Income Net Sales

a. $ 4,390 $ 44,830

d. $65,234 $1,458,999

b. 97,644 398,954

e. 80,158 435,925

c. 111,385 257,082 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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