The Poole Company reported the following income for 2014:

Sales S3o.ooo

Cost of goods sold 8,000

Gross margi n s 22.000

Selling and admimstrative expense 10,000

Operating income s 12,000

Interest expense 4,000

Income before taxes s 8,000

Income tax expense 2,500

Net income s 5,500

What is the company's net margin?

a) 73%

b) 40%

c) 18%

d) 27%

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< >d) 27%