Answer:
- If a company has a profit margin of 10%, it means that the company earned a net income of $0.10 for each dollar of sales. A 10% PROFIT MARGIN MEANS THAT THE COMPANY EARNED 10 CENTS FOR EVERY DOLLAR OF REVENUE.
- If a company's operating margin increases but its profit margin decreases, it could mean that the company paid more in interest or taxes. OPERATING PROFIT = GROSS PROFIT - FIXED COSTS, NET PROFIT = OPERATING PROFIT - (INTERESTS AND TAXES). IF TAXES OR INTERESTS INCREASE, NET PROFITS DECREASE
Explanation:
there are several profitability ratios, the most important ones are:
- profit margin = net profit / total revenue
- gross profit margin = gross profit / total revenue
- return on equity = net income / total shareholder equity
- return on assets = net income / total assets
Answer:
The answer is: C) purchase of supplies for on account.
Explanation:
When Norman Company bought office supplies it will record them as supplies on hand, which are a type of current asset.
When you buy things on account, it means that you will pay the purchase at a later date, so a liability must be recorded.
Answer:
See below
Explanation:
Raw materials purchased is computed as;
Raw material purchase = Ending inventory + required for production - beginning inventory
= 50,000 + ((80,000 + 770,000 - 30,000) × 3) - 60,000
= 50,000 + 2,460,000 - 60,000
= 2,450,000 grams
deals with the production, distribution, and consumption of goods and services.
The correct answer is D) a narrow perspective.
Kenneth, the plant manager, was talking with another manager about Brendan, the lead engineer in the corporate R & D department. Kenneth remarked, "Brendan is so bright, and he is an expert in designing products. But like so many experts, he can’t imagine what it’s like to be as ignorant as the rest of us. I think at times, he cannot see things from an outsider’s perspective."
Brendan is suffering from a narrow perspective.
The narrow perspective means that an individual is so focused on their own things, that forgets the general picture of things and that the fact that other people can have a different view and opinion about a certain topic. That is why Kenneth, the plan manager, thinks about Brendan. So brilliant but he is not considered enough of the other people's limitations on the subject or other peoplés perspectives.
