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3 years ago

A company earned $2,880 in net income for October. Its net sales for October were $12,000. Its profit margin is:

Business

1 answer:

snow_lady [41]3 years ago

5 0

Answer:

profit margin = 23.33%

Explanation:

profit margin = net profit / net sales

net profit = $2,800
net sales = $12,000

profit margin = $2,800 / $12,000 = 0.233333 = 23.33%

The profit margin is a profitability ratio used to compare how many cents different companies are able to make from selling $1. Different companies have different sales levels, but we can group companies by industries and then compare them in order to determine which ones are more efficient at generating income. E.g. Company A sells $100 million but only makes $2 million in profits per year (PM = 2%), and it is much less efficient than Company B that sells $10 million and makes $1 in profits (PM = 10%). Company A's costs are too high compared to Company B's costs.

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igomit [66]

Low gross domestic product

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2 years ago

FSU's bonds have a face value of $1,000 and are currently quoted at 867.25. The bonds have a coupon rate of 6.5 percent. What is

Andrews [41]

Answer:

the current yield is 7.49%

Explanation:

The computation of the current yield on the bond is shown below:

The current yield is

= Annual coupon payments ÷ Bond price

= ($1,000 ×6.5) ÷ $867.25

= $65 ÷ $867.25

Hence, the current yield is 7.49%

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2 years ago

In year 2, Rossman Corp, changed its inventory method from FIFO to the weighted average method. The change resulted in a decreas

Mila [183]

Answer:

True

Explanation:

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This means if the closing amount increases the cost of goods decreases and in the given scenario the closing inventory of year 1 has been decreased which means that the cost of goods sold has increased which will decrease the profit. And if the profit decreases then:

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2 years ago

If a firm is worried about distance, country risk, employee morale, intellectual property protection, legal issues, and obtainin

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Options:

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Answer: keep domestic

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3 years ago

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3 years ago