Sales fluctuate seasonally and the average collection period tends to run 40 days. Bad-debt losses are less than 0.6 per cent of sales. The Perluence's accounting dept estimated a 24 per cent markup as the average for items sold to Pucca Electronics. Bajaj Electronics, in turn, resold the items to yield a 17 per cent markup.Bajaj Electronics incurred out-of pocket expenses that were not considered in calculating the 17 per cent markup on its items. James would receive a 3 per cent commission on all sales. a commission paid whether or not the receivable was collected. In addition to the sales commission, the company would incur variable costs as a result of handling the merchandise for the new account. As a general guideline, warehousing and other administrative variable costs would run 3 per cent sales. First of all, he considered the potential profit from the account. James had estimated first-year sales to Booth Plastics of $65,000. Assuming that Neck Booth took the, 3 per cent discount. Bajaj Electronics would realize a 17 per cent markup on these sales since the average markup was calculated on the basis of the customer taking the discount. His department probably spent three times as much money and effort managing a marginal account as compared to a strong account. He also figured that overdue and uncollected funds had to be financed by Bajaj Electronics at a rate of 18 per cent.
as the marketing expenditure decreases
When a firm maximizes its profit, it automatically maximizes its shareholder value. When both profit and the shareholder value increase, in course of time, the overall firm value will increase. All these would undoubtely increase its share price in the market as well.
expand sales and increase profit
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The Profit Motive
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as the marketing expenditure decreases
Dividends, profit and earnings are related as if there is increase in earnings then there is possibly increase in profit as well as increase in dividend amount.
Similar to the for profit world, the way to increase profit is to reduce expenses or increase income. Non profit's income tends to come from contributed income, program fees, or grants.
profit in a company this is increase in revenue received by the company. profit in a company this is increase in revenue received by the company.
Your mariginal revenue must equal your marginal cost.
My profit = the price I charge - my costs If it costs $1.00 to make a widget, and I sell it for $2.00 then my profit is $1.00. Now if I sell my widget for $3.00 my profit is $2.00.
it will either increase or decrease profit. Prepaid expense should increase profit as the amount has been overstated.
It is simple that if the selling price is increased more then of cost increase then profit will increase but if selling price increased less then cost increased then there will be less profit or selling price increased in same proportion to cost increased then there may be no increase in profit. Besides that there may be so many other reasons for that.
There are various steps to increase the gross profit. You have to increase the efficiency of the workers. The waste produced must be recycled to save money.
net profit will increase
You increase gross profit by by either increasing your sales or reducing the cost of goods sold.