0
If you have profit margin and total sales how do you figure out net income?
Wiki User
∙ 11y ago
If you multiply sales times profit margin, you get Gross Profit. Then you have to subtract Total Expenses to arrive at Net Income Before Taxes, then subtract Taxes to arrive at Net Income.
Wiki User
∙ 11y ago
Add your answer:
Earn +20 pts
How do you Calculate Net Profit Margin?
Net profit margin is calculated as net income divided by sales.
What is profit margin ratio?
net income divided by sales
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 Net income divided by net sales is equal to?
Profit Margin
How do you calculate the Gross Profit Margin?
The Gross Profit Margin is an expression of the Gross Profit as a percentage of Revenue. Gross Profit Margin = Gross Profit/Revenue*100 [or] Gross Profit Margin = Revenue - (Cost of Sales)/Revenue*100 Cost of sales=it include all those expenses and income that will occur during manaufacturing and sales of goods and services
What is the difference between gross margin and profit margin?
Gross Margin = (Gross Profit/Sales)*100 Gross Profit = Sales - Cost of Sales Or in words, the Gross Margin is an expression of the Gross Profit as a percentage of Sales, where the Gross Profit is Sales minus the Cost of Sales.
On the income statement net sales minus cost of goods sold equals?
=Profit Margin, but the question to you what if COGS=Sales what this means? or in other words what does it mean having Profit Margin=0?
What is the difference between operating profit and profit margin?
Gross Margin = (Gross Profit/Sales)*100 Gross Profit = Sales - Cost of Sales Or in words, the Gross Margin is an expression of the Gross Profit as a percentage of Sales, where the Gross Profit is Sales minus the Cost of Sales.
Sample of income statement contribution margin?
Sales xxxxLess:Variable cost xxxxContribution margin xxxx (balancing figure)
What is the difference between gross margin and gross profit?
Gross Margin = (Gross Profit/Sales)*100 Gross Profit = Sales - Cost of Sales Or in words, the Gross Margin is an expression of the Gross Profit as a percentage of Sales, where the Gross Profit is Sales minus the Cost of Sales.
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%.
How do you calculate gross profit margin using cogs and sales?
Gross Profit = Sales - Cost of goods sold Gross profit margin = gross profit / Sales
