Given:
Revenue =$145,952
Since no discounts or returns are indicated in the problem we will assume that revenue is equal to net sales.
Expenses, = 15,000+12,000=27,000
The profit margin ratio formula can be calculated by dividing net income by net sales.
Net income equals total revenues minus total expenses.
Net Income=145,952-27,000= 118,952
So Profit Margin is:
118,952/145952
.815 or 81.5%
