Calculation and understanding of accounting ratios — practice question

The details below are taken from an income statement. cost of sales was $15\,000$ gross profit was $10\,000$ motor expenses were $4\,000$ general expenses were $1\,000$ What is the profit margin for the year?

• A$20\%$
• B$24\%$
• C$36\%$
• D$40\%$