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2 years ago

Is great profit or nay profit more important to consider when your deciding how successful and profitable a company is

1 answer:

5 0

Yes, gross profit or net profit is important in considering if your company is successful and profitable. The main of a business within an economy is to earn profit from its operations and activities.

Net profit is the quantity of money your business earns after deducting all operating, interest, and tax fees over a given period of time. to reach at this cost, you need to recognize a business enterprise's gross profit. If the value of internet income is bad, then it's far known as internet loss.

How do you calculate your net profit?

Net profit is gross earnings minus operating expenses and taxes. You may also consider it as general profits minus all expenses.

What is net profit also referred to as?

Synonymous with internet income, net profit is a business enterprise's general earnings after subtracting all costs. Expenses subtracted consist of the prices of regular business operation as well as depreciation and taxes. Net profit is generally called a business enterprise's “bottom line” and is a true indicator of a business enterprise's profitability.

What's net profit and gross?

Gross earnings suggests how an awful lot money your enterprise makes after meeting a few prices. Net profit indicates how an awful lot you make after assembly all expenses. A business's gross profit is the money it has left after buying the goods and offerings it sold. Its internet income is the cash left after paying clearly all fees and taxes.

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¿Cuáles son y cómo se elabora un Inventario de Mercancías NIC 2? Ayuda plisssss

Leokris [45]

(ﾉ◕ヮ◕)ﾉ*:･ﾟ✧ ✧ﾟ･: *ヽ(◕ヮ◕ヽ)

La NIC 2 define los inventarios como activos que son: mantenidos para la venta en el curso normal del negocio, en el proceso de producción para dicha venta, o. en forma de materiales o insumos para ser consumidos en el proceso de producción o prestación de servicios.

4 0

3 years ago

Amy, the chief operations officer of a company that manufactures baby products, formulates a plan on how the company's newly lau

strojnjashka [21]

d. strategic plan

A strategic plan is an evolving set of goals around how a company will meet customer needs and deal with competition and external factors.

4 0

3 years ago

A small producer of machine tools wants to move to a larger building, and has identified two alternatives. Location A has annual

xenn [34]

Answer:

Location A is superior to up 40 units. From there Location B is better

Explanation:

Giving the following information:

Location A:

Fixed costs of $100,000

Variable costs of $13,000 per unit.

Location B:

Fixed costs of $300,000.

Variable costs of $8,000 per unit.

The finished items sell for $18,000 unit.

Contribution margin Location A= 18000-13000= 5,000

Contribution margin Location B= 18000 - 8000= 10,000

Income formula location A= 5000*Q - 100000

Income formula location B= 10000*Q- 300000

5000*Q - 100000= 10000*Q - 300000

200000= 5000Q

Q= 40 units

Location A is superior to up 40 units. From there Location B is better.

6 0

3 years ago

Sally is planning to sell her company and she prefers to obtain immediate liquidity, and the value of consideration to be fixed.

ella [17]

Answer: A cash sale

Explanation: In simple words, liquidity refers to the ability of an organisation to bear its short term expenses. For that a company must have cash or some assets that can be readily converted into cash in case of need.

Hence Sally should sell her company in cash sale as it will result in inflow of cash which will create liquidity and also the consideration will be certain with short timely payments.

Other option such as IPO or stock for stock might result in increase in value but certainly won't give her liquidity.

6 0

3 years ago

EB5.

rusak2 [61]

Answer:

1. Break-even in units is 6,000 units

2. Break-even in dollars is $720,000

3. Contribution Income Statement for 10,000 units

Sales revenue (10,000 x 120) $1,200,000

Variable cost (10,000 x 90) (900,000)

Contribution margin $300,000

Fixed cost (180,000)

Profit $120,000

4. Units to sell is 16,000

5. Dollars sale is $1,920,000

6. Contribution Income Statement for $2,400,000 sales revenue

Sales revenue (20,000 x 120) $2,400,000

Variable cost (120,000 x 90) (1,800,000)

Contribution margin $600,000

Fixed cost (180,000)

Profit $420,000

Explanation:

1. To compute the Break-even point in units,

Formula is BEP = total fixed cost / unit contribution margin

Step 1. Compute the unit contribution margin

Unit selling price $120

Less : variable cost 90

Unit contribution margin $30

Step 2. compute the unit break-even in units using the formula.

BEP = total fixed cost / unit contribution margin

BEP = $180,000 / 30

BEP = 6,000 units

2. To compute the Break-even point in dollars,

Formula is BES = total fixed cost / contribution margin ratio

Step 1. Compute the contribution margin ratio

Unit selling price $120

Less : variable cost 90

Unit contribution margin $30

So, $30 divided by $120 equals 25% (CMR)

Step 2. compute the unit break-even in dollars using the formula.

BEP = total fixed cost / contribution margin ratio

BEP = $180,000 / 25%

BEP = $720,000

3. To prepare the contribution margin income statement, we will multiply the units sold of 10,000 units by $120 to get the sales revenue. Then multiply 10,000 units by $90 to get the variable cost. Further illustration below;

Sales revenue (10,000 x 120) $1,200,000

Variable cost (10,000 x 90) (900,000)

Contribution margin $300,000

Fixed cost (180,000)

Profit $120,000

4. To compute the units to sell to realize the target profit we will use the formula:

(Total fixed cost + Target profit )/ unit contribution margin

Step 1. Compute the unit contribution margin

Unit selling price $120

Less : variable cost 90

Unit contribution margin $30

Step 2. compute the units to sell using the formula.

(Total fixed cost + target profit) / unit contribution margin

($180,000 + $300,000) / 30

Answer is 16,000 units

5. To compute the sales in dollars to realize the target profit of $300,000,

Formula is (Total fixed cost + target profit) / contribution margin ratio

Step 1. Compute the contribution margin ratio

Unit selling price $120

Less : variable cost 90

Unit contribution margin $30

So, $30 divided by $120 equals 25% (CMR)

Step 2. compute the target sales in dollars using the formula.

(Total fixed cost + target profit) / contribution margin ratio

($180,000 + $300,000) / 25%

$480,000 / 25%

Answer is $1,920,000

6. Contribution Income Statement for $2,400,000 sales revenue. FIRST we must determine how many unit are sold to have that sales revenue. $2,400,000 sales revenue divided by unit selling price equals 20,000 units. To further illustrate, see presentation below.

$2,400,000 / $120 = 20,000 units

Sales revenue (20,000 x 120) $2,400,000

Variable cost (120,000 x 90) (1,800,000)

Contribution margin $600,000

Fixed cost (180,000)

Profit $420,000

4 0

3 years ago