These are the financial statements of Zach Industries for the year ending December 31, 2012. Use the following information to calculate the net profit margin.

Zach Industries Income Statement			Zach Industries Balance Sheet December 31, 2012
for the Year Ended December, 31, 2012			Assets
Sales revenue	$160,000		Cash	$500
Less: Cost of goods sold	$106,000		Marketable securities	$1,000
Gross profits	$54,000		Accounts receivable	$25,000
Less: Operating expenses			Inventories	$45,500
Selling expense	$16,000		Total current assets	$72,000
General and administrative expenses	$10,000		Land	$26,000
Lease expense	$1,000		Buildings and equipment	$90,000
Depreciation expense	$10,000		Accumulated depreciation	$38,000
Total operating expense	$37,000		Net fixed assets	$78,000
Operating profits	$17,000		Total assets	$150,000
Less: Interest expense	$6,100		Liabilities and Stockholders' Equity
Net profits before taxes	$10,900		Accounts payable	$22,000
Taxes	$4,360		Notes payable	$47,000
Net profits after taxes	$6,540		Total current liabilities	$69,000
			Long-term debt	$22,950
			Common stock*	$31,500
			Retained earnings	$26,550
			Total liabilities and stockholders equity	$150,000

*The firms 3000 outstanding shares of common stock closed 2012 at a price of $25 per share.

Answers:	A. 4.2%
	B. 3.9%
	C. 4.0%
	D. 4.1%

Please explain how you got your answer.