Tabor Hill Designers

Income Statement

For the Month Ended February 28, Current Year

Design revenue	$60,000
Operating expenses:
Wage expense	16,000
Utilities expense	500
Telephone expense	250
Total operating expenses	16,750
Income from operations	43,250
Other items:
Interest expense	(100)
Income before income taxes	43,150
Income tax expense	0
Net income	$43,150

Refer to the income statement above and calculate the net profit margin ratio of Tabor Hill Designers for the month ending February 28 of the current year. Then, indicate what this ratio measures and how you would interpret the results. 5pts.

1. Calculation:

2. What it measures and how to interpret: