Business FinancesQuestion 1115 of 1632
A contractor completes $800,000 in revenue with $560,000 direct costs and $160,000 overhead. What is the net profit and net profit margin?
a.$240,000; 30%
b.$80,000; 10%
c.$80,000; 14.3%
d.$80,000; 12.5%
Explanation
Net profit = revenue - direct costs - overhead = $800,000 - $560,000 - $160,000 = $80,000. Net profit margin = $80,000 / $800,000 = 10%.
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Reviewed by Abraham Chen — Licensed California General Contractor (CSLB License #1101856 — verify)