Answer:
Additional information
The previous net income was 45041 and the net sales was 906984
compute the revised profit margin and gross profit rate.
Profit Margin = 96704
GP Rate = 9,27%
Explanation:
Profit Margin Ratio = (Net Profit/Net Sales) x 100
Previous Year:
Net sales = 906,984
Less: Net Income= 45,041
Expense = 861,943
Current Year:
Net Sales= 906984+(15%*906984)= 1043031,60
Less:Expenses=861943+84384= 946327
Expected Net Income= 96704
Profit Margin Ratio = (96704/1,043,031.60) x 100 = 9,27%
Net increase in G.P. =58238
Net increase in Sales = (906,984x15%)= 136,047.60
GP Ratio = (58238.00/136047,60) x 100 = 42.80%