Exercise 3-10 Computing and Interpreting profit margin LO A1
Use the following information to compute profit margin for each separate company a through e. (Round your answers to 1 decimal
place.)
Company Net Income Net Sales Profit Margin (%)
a
$ 4,919 $ 40,320
b.
79,664 358,848
c.
83,196 229,824
d.
61,589 1,310,400
e.
67,661 391,104
Which of the five companies is the most profitable according to the profit margin ratio?
• Company a
• Company b