Compute the net profit margin for each of the businesses.  Which of the three businesses do you consider is more profitable?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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  1. The information for three businesses operating in the same industry is provided in the table that follows:

 

BUSINESS

SNOWHILLS

WHITEFROST

CUMMULUS

Sales Revenue

$   500,000

$   420,000

$   505,000

Total Expenses

$  440,000

384,300

453,500

                 

Compute the net profit margin for each of the businesses.  Which of the three businesses do you consider is more profitable?

 

Group of answer choices
They are all the same
Whitefrost
Cummulus
Snowhills
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