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15 February, 18:15

A company has net income of $130,500. Its net sales were $1,740,000 and its total assets were $2,750,000. Its profit margin equals 7.5%.

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  1. 15 February, 20:53
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    True

    Explanation:

    The profit margin calculation is shown below:

    = (Net income : net sales) * 100

    = ($130,500 : $1,740,000) * 100

    = 7.5%

    We simply divide net income by net sales in order to achieve the gross profit margin. This indicates a correlation between net income or net income and net sales.

    All other information provided is irrelevant. Therefore, it was ignored
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