The net profit margin is 12%
The parameters given in the question are
Revenue= $1,000,000
Cost of goods sold= $750,000
Net income= $120,000
Net profit margin= Net income/revenue × 100
= 120,000/1,000,000 × 100
= 0.12 × 100
= 12 %
Hence the net profit margin is 12%
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