Net profit margin from income statement data

Steps:

• Calculate sales revenue: Sales = Cost of sales + Gross profit = 15,000 + 10,000 = 25,000.
• Calculate net profit: Net profit = Gross profit - General expenses = 10,000 - 4,000 = 6,000.
• Compute profit margin: (Net profit / Sales) × 100% = (6,000 / 25,000) × 100% = 24%.

Why B is correct:

• Profit margin is net profit divided by sales revenue as a percentage, per standard accounting formula.

Why the others are wrong:

• A: Understates margin; implies net profit of 5,000 on 25,000 sales.
• C: Overstates net profit at 9,000, ignoring full expenses.
• D: Equals gross profit margin (10,000 / 25,000), not net.

Final answer: B