Crosswhite Corporation's sales last year were $1,270,000, its gross margin was $400.000, its net operating income was $53,769, and its net income was $26,500. The company's net profit margin percentage is closest to: Mutiple Choice : a. 042% b. 032% c. 2.1% d. 31.5%

option (c) 2.1%

Explanation:

Data provided in the question:

Crosswhite Corporation's sales last year = $1,270,000

Gross margin = $400.000

Net operating income = $53,769

Net income = $26,500

Now,

Net profit margin = [ Net income : Sales ] * 100%

therefore,

Net profit margin = [ $26,500 : $1,270,000 ] * 100%

or

Net profit margin = [ $26,500 : $1,270,000 ] * 100%

or

Net profit margin = 0.02086 * 100%

or

Net profit margin = 2.086% ≈ 2.1%

Hence,

the answer is option (c) 2.1%