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？

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