The information for three businesses operating in the same industry is provided in the table that follows: BUSINESS COMPANY A COMPANY B COMPANY C Sales $ 300,000 $ 420,000 $ 380,000 Net income $ 18,000 $ 20,000 $ 19,000 Net profit margin ? ? ? Based on this data, calculate the net profit margin for each company. What is an analyst most likely to conclude about the profitability of the businesses? Group of answer choices Company A, is more profitable than company B and more profitable than company C. Company C is more profitable than company A, but less profitable than company B. Company B is more profitable than company A and less profitable than company C. Company C is more profitable than company A and less profitable than company B.
The information for three businesses operating in the same industry is provided in the table that follows: BUSINESS COMPANY A COMPANY B COMPANY C Sales $ 300,000 $ 420,000 $ 380,000 Net income $ 18,000 $ 20,000 $ 19,000 Net profit margin ? ? ? Based on this data, calculate the net profit margin for each company. What is an analyst most likely to conclude about the profitability of the businesses? Group of answer choices Company A, is more profitable than company B and more profitable than company C. Company C is more profitable than company A, but less profitable than company B. Company B is more profitable than company A and less profitable than company C. Company C is more profitable than company A and less profitable than company B.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
The information for three businesses operating in the same industry is provided in the table that follows:
|
BUSINESS |
COMPANY A |
COMPANY B |
COMPANY C |
|
Sales |
$ 300,000 |
$ 420,000 |
$ 380,000 |
|
Net income |
$ 18,000 |
$ 20,000 |
$ 19,000 |
|
Net profit margin |
? |
? |
? |
Based on this data, calculate the net profit margin for each company. What is an analyst most likely to conclude about the profitability of the businesses?
Group of answer choices
Company A, is more profitable than company B and more profitable than company C.
Company C is more profitable than company A, but less profitable than company B.
Company B is more profitable than company A and less profitable than company C.
Company C is more profitable than company A and less profitable than company B.
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