Answer:
profit margin is 57.5 %
Explanation:
given data
Sales = $200000
Net income = 100000
Depreciation = 20000
Interest = 10000
Taxes = 5000
to find out
profit margin
solution
we know here profit margin is express as
profit margin = operating profit / sales ......................1
so here operating profit = Net income + Interest + Taxes
operating profit = 100000 + 10000 + 5000
operating profit = 115000
put here value in equation 1
profit margin = 115000 / 200000
profit margin = 0.575
so profit margin is 57.5 %
