Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Company A has Net Income of 300,000; Gross Sales of 3,000,000 and Net Sales of 2,000,000 in 2019. Company B has Net Income of 200,000;
Company A has Net Income of 300,000; Gross Sales of 3,000,000 and Net Sales of 2,000,000 in 2019. Company B has Net Income of 200,000; Gross Sales of 1,333,333 and Net Sales of 1,000,000 in 2019. The profit margin is expressed as net income / net sales. What is the profit margin of Company A, Company B and in which company would you invest in with no other considerations but the profit margin? a. 15%; 20%; Company A b. 10%; 15%; Company A C. 15%; 20%; Company B d. 10%; 15%; Company B
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started