What is the company net profit margin


Question: Arrow's Archery Training Center reported $1,400M in Total Assets; $120M in Operating Income; $42M in Net Income; 1,755 in Net Sales; and $525M in Total Equity. What is the company's net profit margin? (Net income÷Net sales). The industry average is 4%. How should the company respond? Question Select one:

A. The company's net profit margin equals 3%. The company should take no corrective action.

B. The company's net profit margin equals 2%. The company should increase its net income.

C. The company's net profit margin equals 2%. The company should increase its net sales.

D. The company's net profit margin equals 3%. The company should increase its net income.

E. The company's return on assets equals 8%. The company should take no corrective action.

 

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