If a company’s net profit margin is 20% and its revenue is $1,000,000, what is the net profit?
如果一家公司的净利润率为 20%，收入为 100 万美元，净利润是多少？

Question

BlackTom AI · Accepted Answer

Begin by identifying the basic relationship in the problem: net profit equals net profit margin multiplied by revenue.
Option 1: $200,000. This matches the calculation 20% of $1,000,000, since 0.20 × 1,000,000 = 200,000. It is consistent with the given margin and revenue.
Option 2: $800,000. This would imply a net profit of 80% of revenue, which contradicts the stated 20% margin. It incorrectly treats margin as the portion left after profit as a larger fraction of revenue, which is not supported by the data.
Option 3: $60,000. This result corresponds to 6% of $1,000,000, not 20%. It could arise from misplacing a decimal or misreading the margin, but it does not align with the provided 20% figure.
Option 4: $50,000. This is 5% of $1,000,000, which again does not reflect the given 20% net profit margin. It reflects another common miscalculation where a percentage is under-applied to revenue.
To verify, compute: net profit = 0.20 × 1,000,000 = 200,000. Any deviation from 200,000 indicates a misapplication of the 20% margin or an incorrect interpretation of revenue base, so the remaining options are inconsistent with the stated data.

If a company’s net profit margin is 20% and its revenue is $1,000,000, what is the net profit? 如果一家公司的净利润率为 20%，收入为 100 万美元，净利润是多少？

View Explanation

Log in for full answers

Similar Questions

Given this information, calculate the net profit after tax for the business. Sales revenue 107,395 Unearned revenue 6,691 Dividends 7,161 Cost of sales 36,566 Interest revenue 1,699 Operating expenses 19,705 Income tax expense 1,122

Given this information, calculate the net profit for the business. Sales revenue 106,057 Unearned revenue 1,275 Dividends 2,805 Cost of sales 37,054 Interest revenue 4,155 Operating expenses 13,608 Income tax expense 1,092

Given this information, calculate the net profit for the business. Sales revenue 102,980 Unearned revenue 8,057 Dividends 5,886 Cost of sales 35,941 Interest revenue 3,273 Operating expenses 18,270 Income tax expense 2,115

Beaver Company's records have recently been destroyed by fire. The following information was able to be saved from the fire. [table] Return on Equity | 17.00% Debt to Assets | 35.00% Profit Margin | 8.00% Total Assets | $ 700.00 [/table] Beaver's Net Profit for the year was closest to;

Given this information, calculate the net profit for the business. Sales revenue 101,213 Unearned revenue 3,135 Dividends 9,660 Cost of sales 36,847 Interest revenue 9,673 Operating expenses 17,700 Income tax expense 2,815

Given this information, calculate the net profit for the business. Sales revenue 103,401 Unearned revenue 3,170 Dividends 2,949 Cost of sales 31,647 Interest revenue 1,654 Operating expenses 18,994 Income tax expense 1,896

More Practical Tools for Students Powered by AI Study Helper

Homework AI Solver

Stylized AI Paper Writer

Plagiarism Checker Assistant

Citation AI Academic Writing Tool

In-Class Translation Assistant

AI Note Generator

AI Quiz Answers

Past Exam Questions from University Test Bank

Smart Practice Assistant

Adaptive Practice

Making Your Study Simpler