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Marta_Voda [28]
3 years ago
12

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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4 0
2 years ago
Lagoon has two food stores Buck's and Combo's. It costs $1 to make one of Buck's bread loaves and $2 to make one of Combo's chee
Alex Ar [27]

Answer:

a. Complements

b. X(P_1,P_2) =-P_1^2-P_2^2-P_1P_2+16P_1+21.5P_2-52

Explanation:

a. Analyzing the demand equations for both products, a negative relationship between demand and price can be observed for both goods. This means that an increase in price for the cheese rounds causes a decrease in demand for bread, while an increase in price for bread causes a decrease in demand for cheese rounds. This relationship is exhibited when goods are complements.

b. The profit from each store is given by:

X_1 = Q_1*(P_1-\$1)\\X_2 = Q_2*(P_1-\$2)

Total profit is given by:

X_1 =(14-P_1 - 0.5P_2)*(P_1-\$1)\\X_1=14P_1-P_1^2 - 0.5P_1P_2-14+P_1 + 0.5P_2\\X_2 = (19 - 0.5P_1 - P_2)*(P_2-\$2)\\X_2=19P_2-0.5P_1P_2-P_2^2-38+P_1+2P_2\\X(P_1,P_2) =X_1+X_2\\X(P_1,P_2) =-P_1^2-P_2^2-P_1P_2+16P_1+21.5P_2-52

7 0
3 years ago
What's the present value, when interest rates are 8.0 percent, of a $160 payment made every year forever? (Round your answer to
stepladder [879]

Answer:

The present value, when interest rates are 8.0 percent, of a $160 payment made every year forever is $2,000.

Explanation:

Payments each year = Cash flow = C = $160

Rate of Interest = r = 8% = 0.08

Present value of Perpetuity = Cash flow / rate of return

Present value of Perpetuity = C / r

Present value of Perpetuity = $160 / 0.08

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8 0
3 years ago
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Answer:

Two(2) exemptions

Explanation:

The first exemption would be based on the fact that Ronald has health challenges while the second exemption would be on the basis of Ed's (his son) state of mental capability.

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