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Why a business may not ahieve its targeted gross margin?
Cost of goods sold may have been higher than expected or sales prices may have been lower than expected. Remember the Gross margin is sales less cost of goods sold. Say $100-$50=$50 gross margin (50%). If they only sell for $90 instead of $100 the margin would be $90-$50=$40. Or if costs were higher you might have ended up with $100-$60=$40. Either one would reduce the gross margin.
What is the formula for finding profit percentage?
First, there are two kinds of profit: Gross Profit and Net Profit. With gross profit, you are basically concerned with the profit involved by selling an item. For example, if you have a vending machine, and you can buy bottles of soft drinks for 25 cents and sell them for 50 cents. The Gross Profit is (Sales - Cost of Goods)/(sales) = (50 - 25)/50 = 1/2, which is 50%. See that Cost of Goods is the cost you paid for the items that you're selling. But there may be other costs involved in selling drinks from the machine. If you rent the machine, then there is a monthly cost there, or even if you own the machine, there can be repair costs, electricity, etc. All of these costs affect the Net Profit, but generally cannot be tied to the individual sale of one drink. So to figure Net Profit, you take a time period, and add up all costs, then subtract from total revenue (income). To get as a percentage, divide by the revenue. So say in a month you sold 200 drinks at 50 cents, so your revenue is $100 and your cost of goods on those is $50. Then all of your 'other costs' such as repairs, electricity, gasoline to drive and refill the machine, etc. are $40. So total costs are now $50 + $40 = $90, and Net Profit = $100 - $90 = $10, and Net Profit Percentage = $10/($100) = 1/10, which is 10%.
Does Automation results in a shift away from variable costs toward more fixed costs?
Well you can say that. Because with automation there would be more and more use of machines which form the fixed cost and it would lead to retrenchment of employees which contribute to the variable costs of the firm..
Journal entry for credit sales?
Buyer a/c dr. To Sales a/c. The GAAP shows such an entry as: Account Receivable (debit) $$$ Sales (Revenue) (credit) $$$ This is based on Double-Entry Accounting as standardized by the GAAP. For example, say you sold a computer to a customer on credit for $1500, the journal entry would read AR (debit) $1500 Revenue (credit) $1500 Some companies use the term Sales, Revenue, and even Income. Which generally refer to the same thing.
4 How is it possible to have taxable income which means a property is profitable yet have negative cash flow?
Income is not the same thing as retained earnings. A company may have a profit in revenue but show a net-loss in retained earnings. Gross Income (revenue) is what a company makes, Net Income (revenue) is the balance after all expense are paid, and Retained Earnings is the actual "profit or loss" a company retains after any dividends to stockholders are paid (if applicable).For example, say a company has an income of $15000, taxes are figured usually on the full amount, say taxes are 16% and the company has total expense of $14000. To figure their "retained" earnings, we figure Tax expense $2400 + $14000 (other expense) = $16400 (total expenses)Revenue $15000 - Total Expenses $16400 = (-$1400) loss
Why are profit maximize when marginal revenue is equal to marginal cost?
Profits are maximized when marginal costs equals marginal revenue because fixed costs are now spread over a larger amount of revenue. This means that total cost per unit declines and profits increase. Another way to say this is that this is the effect of scale. When marginal revenue equals marginal costs, in a growing revenue situation, you gain economies of scale and higher profits.
Can a business make a profit if its revenue declines?
Yes. Usually when people say revenue, they mean gross earnings, and since a profit is generally considered a positive number (gross earnings - costs). As long as gross earnings are great than costs, a profit is still made.
How do you say revenue in Greek?
The Greek word for "Revenue" is "έσοδα".
How much does batman arkham city cost?
Well it ususally costs more than $30 but in gamestop it costs about less than $30 so ide say like 20 bucks
Is the CEO higher than the President of a company?
No, the C.E.O. is the Chief Executive Officer.
What is viscoslty?
Viscosity is the resistance to flow of a substance. The higher the viscosity, the more resistant it is to flow. That is to say, glue has a higher viscosity than water.
Why would an accountant say a firm is making a profit and an economist say it is losing money?
Economists always include both implicit and explicit costs in the calculation of their profits while accountants only cater for explicit costs when calculating profits.So due to the inclusion of opportunity costs, which can be termed implicit costs, economists' profits will always be lower than accountants' profits.Hence an accountant may say they are making profits while it is different from an economist's view.
Celebrity with most Google hits?
i would say Michael Jackson who at his high point (his death) was about a billion(a number higher than god) and now its 95 million (higher than Jesus)
Is air pressure higher at higher elevation?
Lower. There is less air pressure pushing down on you, than say, a deep sea diver
What is a different way to say revenue growth?
improve your bottom line
A medium 8 inch pizza costs 7 a large 12 inch pizza costs 12.50 which is a better buy?
Based on same ingredients and amounts I would say an 8" for $7 is better. The costs per inch of pizza is less than that of a 12".
Why do some people say dirt cheap?
People use the term dirt cheap because there is nothing cheaper than than the dirt beneath your feet. It costs nothing.
