Business FinancesQuestion 313 of 1605
A contractor's net profit for the year is $60,000 on total revenue of $750,000. What is the net profit margin?
a.8%
b.12.5%
c.15%
d.80%
Explanation
Net profit margin = Net Profit ÷ Revenue = $60,000 ÷ $750,000 = 0.08 = 8%.
Practice all 1605 questions free — no signup required.
Related questions on this topic
- Job costing is BEST described as a system that:
- Which of the following would be classified as a DIRECT cost on a specific project's job cost report?
- A contractor's income statement for the year shows revenue of $800,000, job costs of $560,000, and overhead of $160,000. What is the net profit?
- The PRIMARY purpose of preparing a business budget for the upcoming year is to:
- A contractor projects $1,000,000 in revenue and budgets overhead at 18% of revenue. How much should be budgeted for overhead?
- A contractor compares the budget to actual results and finds materials cost $52,000 against a budgeted $45,000. This $7,000 difference is called a:
Last reviewed: · editorial process
Sen Lin, PrepPass Founder · Verified against California CSLB Contractor License Law & Business Exam · How we review
Reviewed by Abraham Chen — Licensed California General Contractor (CSLB License #1101856 — verify)