Exercise 3-9: Computing and interpreting profit margin L.O. A2 Requirement 1: Use the following information to compute profit margin for each separate company a through e. (Round your answer to 1 decimal place. Omit the "%" sign, which is provided for you.) Net Income Net Sales Profit Margin a. $ 4,818 $ 40,490 11.9 (20%) % b. 78,919 360,361 21.9 (20%) % c. 82,854 230,793 35.9 (20%) % d. 57,900 1,315,925 4.4 (20%) % e. 66,768 392,753 16.9 (0%) % Requirement 2: Which of the five companies is the most profitable according to the profit margin ratio? Your Answer: Choice Selected Company A Company B Company C Company D Company E

Exercise 3-9: Computing and interpreting profit margin L.O. A2

Requirement 1: Use the following information to compute profit margin for each separate company a through e. (Round your answer to 1 decimal place. Omit the "%" sign, which is provided for you.)

		Net Income			Net Sales			Profit Margin
a.			$   4,818			$       40,490			11.9 (20%) %
b.			78,919			360,361			21.9 (20%) %
c.			82,854			230,793			35.9 (20%) %
d.			57,900			1,315,925			4.4 (20%) %
e.			66,768			392,753			16.9   (0%) %
	Requirement 2: Which of the five companies is the most profitable according to the profit margin ratio?

Your Answer: Choice Selected Company A Company B Company C   Company D Company E