The Poole Company reported the following income for 2014:
Sales..................................................................$30,000
Cost of goods sold....................................................8,000
Gross margin........................................................$22.000
Selling and administrative expense................................10,000
Operating income..................................................$ 12,000
Interest expense.......................................................4,000
•Income before taxes...............................................$ 8,000
Income tax expense...................................................2,500
Net income..........................................................$ 5,500
What is the company's net margin?
a) 73%
b) 40%
c) 18%
d) 27%