The following information pertains toVaughnCompany. Assume that all balance sheet amounts represent both average and ending balance figures. Assume that all sales were on credit.

AssetsCash and short-term investments$40000Accounts receivable (net)24000Inventory21000Property, plant and equipment212000Total Assets$297000Liabilities and Stockholders' EquityCurrent liabilities$61000Long-term liabilities89000Stockholders' equity-common147000Total Liabilities and Stockholders' Equity$297000Income StatementSales revenue$80000Cost of goods sold44900Gross margin35100Operating expenses19500Net income$15600Number of shares of common stock6000Market price of common stock$18Dividends per share on common stock0.90Cash provided by operations$30100

What is the profit margin for this company?

38.9%

14.8%

19.5%

11.0%