All categories

2 years ago

Mega corp.has $10,000 in net income and $40,000 in sales. What is mega corp.’s profit margin?

Business

1 answer:

lakkis [162]2 years ago

6 0

Profit margin is 25%

Given net income is $10,000 and sales is $40,000.

Cost = Sales - net income

=$40,000-$10,000

=$30,000

Profit margin to be computed.

Profit margin measures how much the money a firm or the business activity produces by dividing income by the revenues. Profit margin, given as a percentage, is basically the number of cents earned for every dollar of the sales.

Profit margin is computed with the formula given below:

Profit margin= Revenue-Cost / Revenue

= $40,000- $30,0000/ $40,000

= 0.25

=25%

Therefore, the correct option of the profit margin is c. 25%.

To know more about profit margin click here:

brainly.com/question/24161087

#SPJ4

You might be interested in

Various financial data for Year 1 and Year 2 follow. Calculate the total productivity measure and the partial productivity measu

Ber [7]

Answer:

See below

Explanation:

With regards to the above, the formula for total productivity measure is

= Output Sales( Total output) / Total Input

Total productivity measurement for Last year.

Output sales = $200,000

Total input = Input labor + Raw materials + Energy + Capital + others

= $30,000 + $35,000 + $5,000 + $50,000 + $2,000

= $122,000

Therefore, total productivity measure

= $200,000/$122,000

= 1.64

Total productivity measurement for this year

Output sales= $220,000

Total input = Input labor + raw materials + energy + capital + others

= $40,000 + $45,000 + $6,000 + $50,000 + $3,000

= $144,000

Therefore, total productivity measure

= $220,000/$144,000

= 1.53

Partial productivity for last year

Output sales = $200,000

Input = Input labor + raw materials + capital

= $30,000 + $35,000 + $50,000

= $115,000

Partial productivity measure = $200,000/$115,000

= 1.74

Partial productivity measure for this year

Output sales = $220,000

Input = Input labor + raw materials + capital

= $40,000 + $45,000 + $50,000

= $135,000

Therefore, partial productivity measurement for last year

= $220,000/$135,000

= 1.63

The above measures indicates that there is a reduction in total productivity measures from last year to this year. Same applies to partial productivity measures for both years.

8 0

3 years ago

Hercules Workout World gains a client who prepays $ 660 for a package of six physical training sessions. Hercules Workout World

Sergeu [11.5K]

Answer:

Service revenue of $ 440

Explanation:

When the customer prepays, the revenue is yet to be earned hence the entries required would be a debit to cash account and a credit to unearned or deferred revenue.

As the service is rendered and revenue is earned, debit the deferred revenue account and credit the revenue account with the amount earned.

Since $660 was collected for 6 training sessions

Revenue from a training session

= 1/6 × $660

= $110

After 4 training sessions, revenue earned and to be recognized in the income statement

= 4 × $110

= $440

8 0

3 years ago

Winter Company earned revenues of $150,000 in cash and $200,000 on account during 2018. Of the $200,000 on account, $63,000

ICE Princess25 [194]

Answer:

$235,000

Explanation:

Under the accrual accounting system, expenses are recognized in the period incurred and not necessarily in the period cash is paid.

Revenue is also recognized in the period earned and not necessarily when cash is collected.

Total revenue in 2018 = $200,000 + $150,000

= $350,000

Net income is the difference between the revenue and expense

Net income in 2018 = $350,000 - $115,000

= $235,000

8 0

3 years ago

Today, money comes in many different forms. When you go to purchase something at a store, you pay money in the form of cash, a c

seropon [69]

Answer:

The Tulip Mania in Holland went to a economic collapse in the value of Tulip bulbs in 1637. Stating this, even though, it didn't affect the Dutch economy at the time, since the Dutch Republic was the leading economy in the 17th century. Stating this, if Holland was did not possess financial stability, the following potential problems might occur:

1. The entire Dutch Republic might go into a depression, making every form of consumable and necessities inflated and money invaluable.

2. Might lead to a higher rate of unemployment, consequently resulting in other harmful factors like death.

3. Lastly, stating all of this, it would push back development for the Dutch and slow down progression.

Explanation:

I tried my best :)

7 0

3 years ago

Describe two methods you would use to find potential employees if you were in charge of advertising a job for a company. Explain

likoan [24]

Answer

• Use Employee referral Programs

• Hire for Attitude and then do training for skills

Explanation

Employees working in your organization can be a valuable source of knowledge need when recruiting. They have friends and acquaintances that are in the same field. Come up with a policy that will enable staff refer suitable candidates for job positions in the company.

A smart recruiter should search for attitude when recruiting employees because skills can be gained. The best candidate should show a positive attitude towards a position with the required skills which is in most cases difficult to find. The technique to employ here as a recruiter is to find a person with a positive attitude towards a job posting.

6 0

3 years ago