Dublin Corporation reported net sales of $250,000, cost of goods sold of $150,000, operating expenses of $50,000, net income of

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Dublin Corporation reported net sales of $250,000, cost of goods sold of $150,000, operating expenses of $50,000, net income of

$32,500, beginning total assets of $520,000, and ending total assets of $600,000. Calculate each of the following values and explain what they mean: (a) profit margin and (b) gross profit rate.

Business

1 answer:

tatuchka [14] · Answer 1 · 2023-11-10T13:31:04+03:00

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.

Learn more about profit margin rate here: brainly.com/question/19865598

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