Exercise 3-13 Computing and interpreting profit margin LO A1

Use the following information to compute profit margin for each separate company a through e. (Round your answers to 1 decimal place.)

Company	Net Income	Net Sales	Profit Margin (%)
a.	$6,372	$50,570
b.	101,716	450,073
c.	105,499	288,249
d.	83,820	1,643,525
e.	86,824	490,529

Which of the five companies is the most profitable according to the profit margin ratio?

• Company a

• Company b

• Company c

• Company d

• Company e