Assess the profit margin for a company with net income of $100,000 and total sales of $700,000. Calculate the gross profit margin, operating profit margin, and net profit margin. Discuss what these ratios indicate about the company's profitability and operational efficiency. Analyze the potential factors that could influence changes in profit margins, such as cost control measures, pricing strategies, and changes in product mix. Consider the impact of external factors, such as market competition, economic conditions, and regulatory changes, on the company’s profit margins. Discuss the strategic importance of profit margin analysis in setting financial goals, evaluating performance, and making informed business decisions. Explain how profit margin analysis can support pricing and cost management strategies, and its role in achieving sustainable profitability and growth.