Chapter 24, Problem 11CP

To determine

PROFIT MARGIN RATIO: The profit margin ratio is a profitability ratio that measures the amount of net income earned with each dollar of sales generated, by comparing the net income and net sales of the company.

$\text{PROFIT MARGIN RATIO = }\frac{\text{NET PROFIT}}{\text{NET SALES}}\times 100$

To determine:

The Profit margin ratio and interpret the result.