The following information pertains to Hibiscus Company. Assume that all statement of financial position amounts represent both average and ending balance figures. Assume that all sales were on credit.

Assets

Property, plant and equipment $ 210,000

Inventory 20,000

Accounts receivable (net) 30,000

Cash and short-term investments 45,000

Total Assets $305,000

Equity and Liabilities

Shareholders equityordinary $160,000

Non-current liabilities 95,000

Current liabilities 50,000

Total Equity and Liabilities $305,000

Income Statement

Sales revenue $ 120,000

Cost of goods sold 66,000

Gross margin 54,000

Operating expenses 30,000

Net income $ 24,000

Number of ordinary shares 6,000

Market price of ordinary shares $20

Dividends per share .50

What is the profit margin for Hibiscus?

(a) 44.4%

(b) 17.7%

(c) 45.0%

(d) 20.0%