Bed Bug Inn has annual sales of $137,000. Earnings before interest and taxes are equal to 5.8 percent of sales. For the period, the firm paid $4,700 in interest. What is the profit margin if the tax rate is 21 percent?

Multiple Choice

• 6.11%

• 3.33%

• 1.87%

• 5.29%

• 2.43%