Answered step by step
Verified Expert Solution
Link Copied!

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;

image text in transcribed

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

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Finance And Financial Markets

Authors: Keith Pilbeam

2nd Edition

1403948356, 978-1403948359

More Books

Students also viewed these Finance questions

Question

2. Avoid controlling language, should, must, have to.

Answered: 1 week ago