The Coffee Corner reports net income of $240,000, sales of $2,000,000, and average assets of $900,000. What is the profit margin? a. 27% b. 12% c. 45% d. 15%

Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter5: The Income Statement And The Statement Of Cash Flows
Section: Chapter Questions
Problem 2MC: The following information is available for Cooke Company for the current year: The gross margin is...
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The Coffee Corner reports net income of $240,000, sales of
$2,000,000, and average assets of $900,000. What is the profit
margin?
a. 27%
b. 12%
c. 45%
d. 15%
Transcribed Image Text:The Coffee Corner reports net income of $240,000, sales of $2,000,000, and average assets of $900,000. What is the profit margin? a. 27% b. 12% c. 45% d. 15%
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