The following information was drawn from the accounting records of Jones Company.

Net sales	$ 400,000
Net income	50,000
Average total assets	500,000
Average total liabilities	300,000
Average total stockholders' equity	200,000

Based on this information, the company's net margin (also known as return on sales) is

10.0%.

16.7%

12.5%.

None of the choices is correct.