Martinez Corporation reported net sales of $765,000, net income of $142,000, and total assets of $7,634,409. The profit margin is:

Select one:

A. 1.86%.

B. 81.4%.

C. 5.39%.

D. 18.56%.

E. 539.0%.

The **profit margin** is calculated as:

\[
\text{Profit Margin} = \left( \frac{\text{Net Income}}{\text{Net Sales}} \right) \times 100
\]

Using the given values:
- Net Income = $142,000
- Net Sales = $765,000

Substitute into the formula:

\[
\text{Profit Margin} = \left( \frac{142,000}{765,000} \right) \times 100
\]

Let me calculate that.

\[
\text{Profit Margin} = \left( \frac{142,000}{765,000} \right) \times 100 = 18.56\%
\]

The correct answer is:

**D. 18.56%.**

Would you like more details or have any questions?

Here are 5 related questions to explore:
1. What does the profit margin ratio tell about a company's performance?
2. How does a company's profit margin compare across different industries?
3. What other financial ratios can be used to assess profitability?
4. How is net income calculated from gross profit?
5. What is the impact of high sales volume on profit margins?

**Tip**: A higher profit margin indicates better control over costs relative to revenue.

Martinez Corporation reported net sales of $765,000, net income of $142,000, and total assets of $7,634,409. The profit margin is:

Select one:

A. 1.86%.
B. 81.4%.
C. 5.39%.
D. 18.56%.
E. 539.0%.

Discover how to calculate the profit margin for Martinez Corporation with a step-by-step solution. Given net sales of $765,000 and net income of $142,000, learn to apply the profit margin formula. This problem is ideal for students in Grades 9-12 and covers essential financial math concepts.

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