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Sagot :
The profit margin is 16.92 percent.
Step 1
return on equity = 23.62 percent
capital intensity ratio = 1.06
equity multiplier = 1.48
Step 2
Profit margin = 23.62/[(1 / 1.06) ×1.48]
⇒ 0.1692 × 100
⇒16.92 percent
The profit margin is 16.92 percent.
How are profit margins determined?
The formula for profit margin
- Get your COGS (cost of goods sold) information.
- Find out your income (the price at which you sell these items, for instance $50).
- Subtract the cost from the income to arrive at the gross profit.
- Gross profit divided by revenue: $20 / $50 Equals 0.4 .
- Put it in percentage form: 0.4 x 100= 40%
learn more about profit margin here https://brainly.com/question/10218300
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