First, we need to find the gross margin.
Gross margin = net sales - cost of goods sold
Gross margin = $1,750,000 = $390,000
Gross margin = $1,360,000
Then, we need to find the net profit before tax.
Net profit before tax = gross margin - expenses
Net profit before tax = $1,360,000 = $960,000
Net profit before tax = $400,000
Net income after taxes = (total revenue - total expenses)/total revenue
Net income after taxes = (1,750,000 - 960,000)/(1,750,000)
Net income after taxes % = 45%
