Question $8$

A company has total revenue of $$759,000$ and total expenses of $$445,500.$ If the company overstates sales by $$13,500,$ what is the

effect on the company's net profit margin?

Net profit margin would be understated.

$($B$)$ Net profit margin would be overstated.

Net profit margin would be unaffected.

Net profit margin cannot be computed because overstating sales is unethical.

None of the above.