Dublin Corporation reported net sales of $250,000, cost of goods sold of $150,000, operating expenses of $50,000, net income of
1 answer:
The profit margin rate is 13%. And the gross profit rate is 40%.
Net Profit Margin = Net Profit ⁄ Gross Revenue x 100
Net Profit is calculated by subtracting all company expenses from gross revenue. Profit margin calculation results are expressed as a percentage. For example, a 10% profit margin means that for every $1 in sales, the company earns $0.10 in net profit.
But in general, small businesses have healthy profit margins between 7% and 10%. However, be aware that certain companies may have lower profit margins. B. A retail or food company. This is because overhead costs tend to be high.
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Answer:
PV = 1414
Explanation:
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Answer:
Vaughn should produce Plain as it makes greater profit.
Explanation:
Vaughn Manufacturing can sell all the units it can produce of either Plain or Fancy but not both.
Plain has a unit contribution margin of $86 and takes two machine hours to make and Fancy has a unit contribution margin of $111 and takes three machine hours to make.
There are 2400 machine hours available to manufacture a product.
Profit per machine hour for Plain
=
= $43
Profit per machine hour for Fancy
=
= $37
The difference in profit
= $43 - $37
= $6
Plain makes $6 more profit per machine hour than Fancy.