4.6: If a company’s net profit margin is 10% and its revenue is $600,000, what is the net profit?

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BlackTom AI · Accepted Answer

The question asks to find net profit given a net profit margin and revenue. Here, the net profit margin is 10%, and revenue is $600,000.

Option 1: "$60,000". This matches the calculation 10% of $600,000 = 0.10 × 600,000 = 60,000. It aligns with the basic formula: Net Profit = Net Profit Margin × Revenue.

Option 2: "$50,000". If this were the result, the implied margin would be 50,000 ÷ 600,000 = 0.0833 or 8.33%. That does not equal the given margin of 10%, so this is incorrect for the stated data.

Option 3: "$70,000". A net profit of 70,000 corresponds to a margin of 70,000 ÷ 600,000 = 0.1167 or 11.67%. This is higher than the provided 10% margin, making it inconsistent with the given figures.

Option 4: "$40,000". This implies a margin of 40,000 ÷ 600,000 = 0.0667 or 6.67%, which again does not match the 10% margin provided.

In summary, each incorrect option represents a different implied margin (8.33%, 11.67%, and 6.67%), none of which equal the stated 10% margin, while the correct calculation using the formula yields 60,000. The reasoning hinges on applying Net Profit = Net Profit Margin × Revenue and checking consistency across all options.

Business Finance Exam 1 Practice

4.6: If a company’s net profit margin is 10% and its revenue is $600,000, what is the net profit?

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A 公司的净收入为 273,165 美元，销售额为 2,399,874 美元。利润率是多少？如果答案是 10.4567%，则写 0.1046。

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Business Finance Exam 1 Practice

4.6: If a company’s net profit margin is 10% and its revenue is $600,000, what is the net profit?

查看解析

登录即可查看完整答案

类似问题

A 公司的净收入为 273,165 美元，销售额为 2,399,874 美元。利润率是多少？ 如果答案是 10.4567%，则写 0.1046。

Company A has a net income of $273,165 and sales of $2,399,874. What is the profit margin? If the answer is 10.4567%, write 0.1046.

Company A has a net income of $286,590 and sales of $2,527,338. What is the profit margin? If the answer is 10.4567%, write 0.1046.

Company A has a net income of $231,917 and sales of $2,080,435. What is the profit margin? If the answer is 10.4567%, write 0.1046.

Redriver Company has a 2.5% return on average assets of $500,000 and a net profit ratio of 10%.Redrivers's sales are closest to?

更多留学生实用工具

希望你的学习变得更简单

A 公司的净收入为 273,165 美元，销售额为 2,399,874 美元。利润率是多少？如果答案是 10.4567%，则写 0.1046。