A company has net income of $150,000 and total sales of $1,200,000. Calculate the net profit margin. Discuss the significance of net profit margin in evaluating a company’s overall profitability and financial health. Analyze the potential factors that could influence changes in net profit margin, such as variations in revenue, COGS, operating expenses, and interest and tax expenses. Consider the implications of a high or low net profit margin for the company’s investment attractiveness and financial stability. Discuss the strategic importance of optimizing net profit margin, including managing costs, enhancing pricing strategies, and improving operational efficiency. Explain how net profit margin can be used in performance evaluation, benchmarking, and strategic decision-making. Discuss the limitations of net profit margin and how it can be complemented with other profitability metrics.