From the information provided, calculate Giuseppe's profit margin ratio for each of the three years. Comment on the results, assuming that the industry average for the profit margin ratio is 6% for each of the three years.

What will be an ideal response?


???  2017?  2016?  2015
?
?  NI  ?$ 2,630?$ 2,100?$ 1,850
Profit margin =Sales?$36,500?$32,850?$31,200
????????
???7.2%?6.4%?5.9%
????????
Analysis comment: The profit margin has increased in all three years and has exceeded the industry average in the last two years. These results reflect positively on Giuseppe and its trend in profitability.

Business

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