answersLogoWhite

0

Cost to income ratio

Updated: 9/11/2023
User Avatar

Wiki User

15y ago

Best Answer

operating expenses/operating income

User Avatar

Wiki User

15y ago
This answer is:
User Avatar

Add your answer:

Earn +20 pts
Q: Cost to income ratio
Write your answer...
Submit
Still have questions?
magnify glass
imp
Continue Learning about Accounting

How do you calculate the following sales price of 110 fixed cost 385500 expect to sell 11000 units next year with operating income of 125550 Need variable cost per unit and contribution margin ratio?

Revenue (11000 * 110) 1210000fixed Cost 385500variable cost 698950 (balance figure)Operating Income 125550Variable cost per unit = 698950/11000variable cost per unit = 63.54Contribution margin ratio = (Sales - Variable cost) / Sales * 100Contribution margin ratio = (1210000 - 698950 ) / 1210000Contribution margin ratio = 0.42 or 42%


How do you figure gross magin ratio if net sales is 28496 million its cost of good sold was 19.092 million and net income is 997 million?

Gross margin ratio = (sales - cost fo sales) / sales Gross margin ratio =( 28496 million - 19092 million ) / 28496 million


JCPenney had net sales of 24750 million cost of goods sold of 16150 million and net income of 837 million is Its gross margin ratio equals 3.4?

1,000,000,000,000,000,000


How do you calculate break even point if the variable cost is not given?

If contribution margin ratio or contribution margin per unit is given then it is not required to have variable cost available as in that case break even point can be calculated using contribution margin ratio, if contribution margin ratio is also not available then we have to prepare summarized income statement for missing figures and from that information we will create break even point.


How do calculate break even point?

Break even point = Fixed cost / Contribution margin ratio Contribution margin ratio = (sales - variable cost ) / Sales

Related questions

Income to staff cost ratio?

staff cost to income


How is bank cost to income ratio calculated?

The cost/income ratio is an efficiency measure similar to operating margin. Unlike the operating margin, lower is better. The cost income ratio is most commonly used in the financial sector. It is useful to measure how costs are changing compared to income - for example, if a bank's interest income is rising but costs are rising at a higher rate looking at changes in this ratio will highlight the fact. The cost/income ratio reflects changes in the cost/assets ratio. The cost income ratio, defined by operating expenses divided by operating income, can be used for benchmarking by the bank when reviewing its operational efficiency. Francis (2004) observes that there is an inverse relationship between the cost income ratio and the bank's profitability. Ghosh et al. (2003) also find that the expected negative relation between efficiency and the cost-income ratio seems to exist. The study shows that the cost-income ratio is negative and strongly significant in all estimated equations, indicating that more efficient banks generate higher profits.


How to compute cost to income ratio?

A cost or expense ratio is not that hard to calculate. Basically its the operating expenses divided by the average value of assets under management. Many sites have calculators that make this easy.


What is a strong cost to income ratio?

A strong cost to income ratio is a low ratio, typically below 50%. This indicates that a company's operating costs are relatively low compared to its income, indicating efficient operations and good financial management. A low ratio suggests that a company is able to generate significant profits while keeping costs under control, which is favorable for investors and stakeholders.


Management accounting ratio analysis along with ratio analysis formulas?

How dose the cost income ratio is calculated in the banking model?


How do you calculate the following sales price of 110 fixed cost 385500 expect to sell 11000 units next year with operating income of 125550 Need variable cost per unit and contribution margin ratio?

Revenue (11000 * 110) 1210000fixed Cost 385500variable cost 698950 (balance figure)Operating Income 125550Variable cost per unit = 698950/11000variable cost per unit = 63.54Contribution margin ratio = (Sales - Variable cost) / Sales * 100Contribution margin ratio = (1210000 - 698950 ) / 1210000Contribution margin ratio = 0.42 or 42%


What is income ratio in mutul fund industries?

income ratio of a mutual fund is defined as a ratio of net investment income to its average net asset value.


Can you change your debt to income ratio?

Your debt-to-income ratio is your total monthly debt obligations divided by your total monthly income. Increase your income or lower your debt payments to have a more favorable debt-to-income ratio. How do the credit companies know your income?


How do you figure gross magin ratio if net sales is 28496 million its cost of good sold was 19.092 million and net income is 997 million?

Gross margin ratio = (sales - cost fo sales) / sales Gross margin ratio =( 28496 million - 19092 million ) / 28496 million


Is income a ratio or interval scale measurement?

Income is a ratio measure. In ratio measures, one can order categories, specify the difference between two categories, and the value of zero on the variable represents the absence of the variable. Thus, income can take on values of $0, $10, $30,000, etc. Zero dollar income means the absence of income, making income a ratio measurement.


What is cost ratio calculated by?

Cost Ratio = expenses/earnings


For what reasons is a debt to income ratio calculator number used?

A debt to income ratio calculator is used to measure your income against your debt to see if you can afford a loan.