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1 year 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]1 year 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:

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Answer:

$4,000;$3,500

Explanation:

Calculation to determine How much loss can Gerald deduct, and how much loss must he suspend if he only applies the tax basis loss limitation

Calculation for How much loss can Gerald deduct

Gerald's loss Deduction = [$2,000 + $3,000 - $2,000 + (50% × $2,000)]

Gerald's loss Deduction =[$2,000 + $3,000 - $2,000 + $1,000]

Gerald's loss Deduction=$4,000

Calculation for how much loss must he suspend

Loss to Suspend=(50%*$15,000)-$4,000

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3 years ago

What is opportunity cost?

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2 years ago

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Explanation:

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7 0

3 years ago

You buy a share of The Ludwig Corporation stock for $21.70. You expect it to pay dividends of $1.00, $1.16, and $1.3456 in Years

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Answer:

21%

Explanation:

Given that,

Cost of share = $21.70

Expect to pay dividend in year 1 = $1.00

Expect to pay dividend in year 2 = $1.16

Expect to pay dividend in year 3 = $1.3456

Expected selling price of share at the end of year 3 = $28.15

Growth rate in Dividends:

= [(Dividend in Year 2 - Dividend in Year 1) ÷ Dividend in Year 1] × 100

= [($1.16 - $1.00) ÷ $1.00] × 100

= 0.16 × 100

= 16%

Expected dividend yield :

= (Dividend in year 1 ÷ Cost of Share ) × 100

= (1.00 ÷ $21.70) × 100

= 0.05 × 100

= 5%

Stock's expected total rate of return:

= Expected Dividend Yield + Growth rate in Dividends

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8 0

3 years ago

At the beginning of 2018, Uptown Travel, Inc. has the following account balances: Accounts receivable $ 46,000 (Debit) Allow

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Answer:

The amount of bad debt expenses for the year 2018 is $38,000

Explanation:

In the given question we have been told that the allowance for bad debts is $8,000 which the uptown travel, Inc has made and also another information that has been given in the question is that the uptown travel Inc uses the aging of account receivable method , this a method where we are calculating the amount of uncollectible bad debt expenses.

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= $29,000 + $ 17,000

= $46,000

But in the question it has been given to us that the uptown travel Inc ahs made a allowance for the bad debts, so we will subtract this amount from the total amount which is uncollectible to get the amount of bad debt expenses.

Bad debt expenses = $46,000 - $8,000

= $38,000

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3 years ago