Answer:
Gross Margin = 60.97%
Net Profit Margin = 4.337%
Explanation:
Gross Profit Margin = 
Here as per the data provided,
Net Sales for the year 2017 = $784,000
Cost of goods sold for the year 2017 = $306,000
Gross Profit Margin = 
= 60.97%
Net profit margin = 
=
= 4.337%
Since it is not specified which margin to calculate, when we say profit margin we will calculate gross margin.
Gross Margin = 60.97%
Net Profit Margin = 4.337%
Answer:
Total variable cost= $180,000
Fixed costs= $40,000
Explanation:
Giving the following information:
Contribution margin= $220,000
Sales= $400,000
Net income= $180,000
<u>The contribution margin formula is as follow:</u>
Total Contribution margin= sales - total variable cost
<u>Therefore, we need to isolate the total variable cost and replace the variable with the data:</u>
Total variable cost= sales - total contribution margin
Total variable cost= 400,000 - 220,000
Total variable cost= $180,000
<u>Finally, the fixed costs:</u>
Fixed costs= total contribution margin - net income
Fixed costs= 220,000 - 180,000
Fixed costs= $40,000
Answer:
Checks like money-? Because then, you are talking prices. The higher the price the more it most likely is. If you run a company, to you you want to make the higher quality things more, unless you just want to scam somebody. Thats all i can do for now, i can finish later maybe.
Explanation:
Checks like money-?
1)The cm ratio<span> is the difference between a company's sales and variable expenses (expenses proportional to units produced), expressed as a <span>percentage. Hence, we have that the costs of the product per unit are 70%= 100%-30% of the unit income, thus they are 40*70%=28$. Thus, the variable expenses per unit are 28$.
2) In order to break even, they have to make profit of 180000$ from sales. Each unit gives a profit of 12$=40$-28$ (unit profit). Hence, in order to make a profit of 180000$, the have to sell 180000/12=15000 units. Those units will bring in sales of 40*15000=600000$. We also have that if the company wants to make a net profit of 60000$, the profit from the unit sales needs to be 240000$ in total. Hence, they will need 240000/12=20000 units and the sales will be 40*20000=800000$ at that point.
3) Let us calculate the new cost. It is obviously 28-4=24$. The new profit margin per unit is 40-24=16$. Hence, to break even this time they will need only 180000/16=11250 units. They will be sold for 40*11250=450000$ in total. To make that additional profit of 60000$, they will need to sell 60000/16 more units, hence 3750 more units. This means that they need to do an additional 150000 dollars in sales. With the new variable cost, to achieve profit of 60000 they need to sell 11250+3750=15000 units and they will cost 600000$
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