Given the following information for Mouse Inc. for the year 20X1:- Net Sales: \$500,000- Cost of Goods Sold: \$320,000- Operating Expenses: \$100,000- Interest Expense: \$10,000- Income Tax Expense: \$14,000Calculate Mouse Inc.'s profit margin for the year 20X1.Profit margin is calculated as:\[\text{Profit Margin} = \frac{\text{Net Income}}{\text{Net Sales}} \times 100\%\]

Step 1: Begin by calculating the Net Income for Mouse Inc. Net Income is determined by subtracting all expenses (Cost of Goods Sold, Operating Expenses, Interest Expense, and Income Tax Expense) from Net Sales. Use the formula: \( \text{Net Income} = \text{Net Sales} - (\text{Cost of Goods Sold} + \text{Operating Expenses} + \text{Interest Expense} + \text{Income Tax Expense}) \).