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A company earned 2000 in net income for October and its net sale for October were 10000 so what is its profit margin?
Wiki User
∙ 14y ago
20%
Wiki User
∙ 14y ago
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operating margin?
operating margin shows the operating income earned by a company. higher margin implies higher revenue earned. operating margin is calculated using the following formula:operating margin = (Operating income / Revenue) x 100
profit margin?
it is also known as net profit margin. this ratio shows how much net income a company earns from operations. a higher ratio implies higher profit earned. profit margin is calculated as follows:profit margin = (Net income / Revenue) * 100
Can a profit margin ratio be negative?
A profit margin can be negative if the company had a negative net income. For eample if the company had $100,000 in net sales, but their net income was ($10,000) then (10,000)/100,000 = (10%) or negative 10%.
What is the formula for Operating Margin?
Operating Margin is a measurement of what proportion of a company's revenue is left over, before taxes and other indirect costs are incurred, after paying for variable costs of production like wages, raw materials etc.A good operating margin is required for a company to be able to pay for its fixed costs like interest on its debt. A higher operating margin means that the company has less financial risk.Formula:Operating Margin = (Operating Income / Revenue)Operating income is the difference between operating revenues and operating expenses
What is the difference between net and gross margin?
Gross margin is Gross income as a percentage of revenue. Net Margin is net income as a percentage of revenue.
Name for an expanded contribution margin income statement?
A contribution margin income statement is an income statement in which all variable expenses are deducted from sales to arrive at a contribution margin. It is the expanded version.
What is a high profit margin?
A high profit margin is a good indication that a business is doing well, and has financial stability. This also shows that the company has good control over its costs in relation to its income.
What is the break even point if a company reported 762000 in sales 25400 units and a net operating income of 29000 and the company total contribution margin equals 529800?
177800
How can one improve own contribution margin in the UK?
The factors that impact on the contribution margin are expenses and income or revenue. One can improve their own contribution margin by decreasing expenses or increasing their income.
What formula would you use to calculate the net profit margin?
You take the Earning before interest and taxes (EBIT)/sales=Operating profit margin
What is a Pro-forma contribution margin income statement?
Proforma contribution margin income statement Sales revenue xxxxLess: Variable cost xxxxContribution margin xxxxLess: Fixed Cost xxxxprofit (Loss) xxxx
Profit margin ratio?
Profit margin is a ratio of probability calculated as net income divided by revenues, or net profits divided by sales. It measures how much out of every ringgit of sales a company actually keeps in earnings. Profit margin is very useful when comparing companies in similar industries. A higher profit margin indicates a more profitable company that has better control over its cost compare to its competitors.
