Explanation:
The computation is shown below:
a. The gross margin is
Gross margin = (Sales revenues - Cost of sales) ÷ (Sales revenues) × 100
= ($10.7 million - $5.9 million) ÷ ($10.7 million) × 100
= 45%
b. The local operating margin is
= (Operating income ÷ Sales) × 100
where,
Operating income is
= (Sales - cost of sales - selling, general & administrative expenses - research & development - Depreciation & Amortization) ÷ (Sales revenue) × 100
= ($10.7 million - $5.9 million - $0.55 million - $1.2 million - $1.4 million) ÷ ($10.7 million) × 100
= ($1.65 million) ÷ ($10.7 million) × 100
= 15.42%
c. Net profit margin
= (Net profit ÷ Sales) × 100
where,
= (Sales - cost of sales - selling, general & administrative expenses - research & development - Depreciation & Amortization) × (1 - tax rate) ÷ (Sales revenue) × 100
= ($10.7 million - $5.9 million - $0.55 million - $1.2 million - $1.4 million) × (1 - 0.35) ÷ ($10.7 million) × 100
= ($1.0725 million) ÷ ($10.7 million) × 100
= 10.02%
I think its a because not alot of people allow that type of dress wear
Answer:
The ROI is 30%
Explanation:
New contribution margin = old contribution margin + increase
= 140.000 + 10.000
= 150.000
Net Income = contribution margin – total fixed expense
= 150.000 -90.000
= 60.000
ROI= Net income/ average operating assets
= 60.000/200.000
=30%
