Use the following information to compute profit margin for each separate company a through e.
|
|
Net Income |
Net Sales |
|
a. |
$ 5,390 |
$ 44,830 |
|
b. |
87,644 |
398,954 |
|
c. |
93,385 |
257,082 |
|
d. |
$55,234 |
$1,458,999 |
|
e. |
70,158 |
435,925 |
Which of the five companies is the most profitable according to the profit margin ratio? Interpret that company’s profit margin ratio.