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Twelve Months Ago, Genevieve's Cupcake Business Had a Net Income

Question 5

Multiple Choice

Twelve months ago, Genevieve's cupcake business had a net income of $36,250 and sales of $145,000. Now that this current year is coming to an end, she's determined that her business had a net income of $33,600 and sales of $168,000 over the last twelve months. What does Genevieve's net profit margin reveal about her business?


A) Her business is doing better this year than last; her net profit margin and sales are increasing.
B) Her business is fine; her net profit margin has remained stable and sales are increasing.
C) Her business is doing better this year than last; her net profit margin is decreasing.
D) Her business is not doing as well as it did last year; her net profit margin is decreasing.

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