Diagnostics Corporation of America income statement for 2015 is presented below:
Sales....................................................................................... $2,790,000
Cost of goods sold................................................................. 1,790,000
Gross profit........................................................................... 1,000,000
Selling and administrative expense......................................... 302,000
Operating profit..................................................................... 698,000
Interest expense..................................................................... 54,800
Income before taxes............................................................... 643,200
Taxes (30%)........................................................................... 192,960
Income after taxes.................................................................. $ 450,240
Compute the profit margin for 2015.