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1. Use the above information to compute profit margins for each separate company

ID: 2605577 • Letter: 1

Question

1. Use the above information to compute profit margins for each separate company a through e. (Round your answers to one decimal place.) 2. Which of the five companies is the most profitable according to the profit margin ratio: company A, B, C, D, or company E?

4 Exercise 3-10 Computing and interpreting profit margin LO A2 Use the folowing information so campute protft margin for each separate company a through e (Round your answers to 1 dlecimal pisce.) Whikh oi the tIive companies is the most proftable according to the prott margin ratio Prov 40, 4lll Neat)

Explanation / Answer

Profit Margin =Net Income / Net Sales

Which of the five companies is the most profitable according to the profit margin ratio: company A, B, C, D, or company E?

Company C is Most Profitable

Company Net Income Net Sales Profit Margin a 5830 47020 12.4% b 93739 418478 22.4% c 57557 268914 21.4% d 74875 1528150 4.9% e 79815 456054 17.5%