0
Candy Company had sales of 240000 and cost of goods sold of 108000 What is the gross profit margin?
Wiki User
∙ 13y ago
Gross profit = sales - cost of good sold
Gross profit margin = gross profit / sales *100
Gross profit = 240000- 108000 = 132000
Gross profit margin = 132000/240000 *100
Gross profit margin = 55%
Wiki User
∙ 13y ago
Add your answer:
Earn +20 pts
Profit in a sentence?
I am trying to expand the company's profit margin.
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
What is net profit margin?
Net Profit margin is an indicator of the profitability of an organization. This refers to the actual amount of profit the company makes after deducting taxes and operating expenses. All company's strive to attain a good or rather high net profit margin. A net profit margin is also an indicator of the ability of the organization to control cost and also a good pricing strategy.Formula:Net Profit Margin = (Net Profit (After Taxes)/ Revenue) * 100%Note: It is easy to confuse gross profit margin and net profit margin. Gross profit is the amount of money left after paying for the operating expenditure. Net profit is the amount of money left after paying for operating expenses as well as government taxes. This is the actual amount of profit that goes into your pocket.
What does profit margin mean?
Profit margin means the amount of profit you make measured in a percentage. This can include:Gross Profit marginNet Profit marginMarkup Profit margin
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%.
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.
How do you calculate a profit margin ratio?
Profit Margin ratio is the comparison of profit as a percentage of revenue and calculated as follows Profit Margin ratio = Net Profit/Revenue
Discuss the relative importance of BOTH gross profit and contribution margin?
Gross profit and the contribution margin are both important factors for a business' accounting functions. The gross profit allows the company to keep track of its revenue compared to expenses. The contribution margin allows the company to track the sale price of their products in relation to their costs to manufacture them.
How to maintain company's return on shareholder's equity with a decline in a net profit margin?
increase the company's total assets.
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.
How do you calculate profit margins?
Gross Profit Margin = Gross Profit/Revenues Net Profit Margin = Net Profit/Revenues
What is a net margin?
The Net Profit Margin is an Expression of the Net Profit as a percentage of the Revenue, where the Net Profit is the Revenue minus all Expenses. The Net Profit Margin can be calculated in the following ways: Net Profit Margin = Net Profit/Revenue*100 [or] Net Profit Margin = (Revenue - all Expenses)/Revenue*100
