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Given:
Net sales = $400000
Cost of goods sold = $200,000
Operating expenses = $100,000
Interest expenses = $50,000
To find:
The operating profit margin
Solution:
To calculate the operating profit margin, first we have to find the operating profit.
Subtract your total operating expenses from gross profit to calculate operating profit.
That is,
Divide operating profit by gross revenue to calculate operating profit margin.
Therefore, the Operating profit margin is 25%.
The central bank decreases the money supply. The relationship between the unemployment rate and the rate of inflation is one of the key concepts in economics, and the short run Phillips curve illustrates this relationship.
The relationship between this shift in the aggregate demand curve in the short run and the emergence of unemployment and inflation is shown by the curve. Additionally, it displays the short-term shift in the economy's aggregate supply curve.When the economy shifts from its short-run equilibrium to its long-run equilibrium.
The following things will occur the cost will decrease.There will be less demand for money. Note that a decrease in the moment supply will cause the moment supply to move to the left. A smaller money supply will also result in a smaller overall demand. Therefore, the price level and money demand will both decrease as the economy moves from its short-run equilibrium to its long-run equilibrium.
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