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2 years ago

A company earned $6,125 in net income for october. its net sales for october were $17,500. its profit margin is:__________

Business

1 answer:

julia-pushkina [17]2 years ago

8 0

Profit Margin = Net Income/Net Sales

Profit Margin = $6,125/$17,500 = 0.35= <u>35%</u>

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The profitability of your company can be gauged by looking at your profit margin. How much of each dollar of sales or services is retained as profit is stated as a percentage of those profits. In business, the profit margin is calculated by dividing the net income by the net sales or revenue. To calculate net income, or net profit, a business simply deducts operating costs from sales.

The difference between gross and net profit margins

While a high gross profit margin and solid operational profit margin are great signs, a low net profit margin indicates wasteful spending on non-core business functions. It's a sign that your running costs are higher than the price you're charging for your products or services if the operational profit margin is negative.

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To know more about Profit Margin refer here:

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Answer:

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Explanation:

Under the CVP concept, the break-even point is calculated by dividing the fixed costs by the contribution margin per unit.

i.e., break-even point = fixed cost/ contribution margin per unit

Currently, fixed costs are $213,000, an increase of 10% will take to

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The selling price is $250, an increase of 40%

=$250 x 1.4

=$350

variable cost will remain the same this year and the following year

Current variable costs are 20% of sales

=20/100 x 250

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=$50

Contribution margin will be new selling price - variable costs

=$350-50

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4 years ago

The projected capital budget of Kandell Corporation is $1,000,000, its target capital structure is 60% debt and 40% equity, and

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Answer:

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Answer:

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Explanation:

The correct amounts of assets, liabilities and stockholders' equity at month-end and net income for the month can be determined as follows:

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Stockholders' Equity = Recorded Stockholders' Equity - Depreciation + Unbilled service revenue - Unpaid wages = $60,000 - $4,500 + $1,850 - $450 = $56,900

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Note that from the above calculations, we can obtain:

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