The net profit margin, or simply net margin, measures how much net income or profit is generated as a percentage of revenue.
It is the ratio of net profits to revenues for a company or business segment. Net profit margin is typically expressed as a percentage but can also be represented in decimal form.
<h3>How do we calculate net profit margin?</h3>
Net profit margin is calculated by dividing the net profits by net sales, or by dividing the net income by revenue realized over a given time period.
<h3>What is good net profit ratio?</h3>
For example, in the retail industry, a good net profit ratio might be between 0.5% and 3.5%.
Other industries might consider 0.5 and 3.5 to be extremely low, but this is common for retailers. In general, businesses should aim for profit ratios between 10% and 20% while paying attention to their industry's average.
Learn more about net profit margin here:
<h3>
brainly.com/question/22024991</h3>
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Answer:
The 2016 operating cash flow is $56,905
Explanation:
The computation of the operating cash flow is shown below:
Operating cash flow = Sales - costs - other expenses - depreciation expenses - taxes + depreciation expense
= $162,500 - $80,000 - $3,300 - $9,000 - $22,295 + $9,000
= $56,905
The interest expense should not be considered in the computation part. Hence, ignored it
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Solution :
Particulars 
Sales $
$
$
$
Variable expenses 588,000 208000 180000 200000
Contribution margin 912000 192000 420000 300000
Traceable fixed 770,000 240,000 330,000 200,000
expenses
Geographic market 142,000 -$48000 $90000 $100000
segment expenses
Common fixed
expenses not traceable
to geographic markets
Net operating income
