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The profit goes down when sales go up because either expenses go up too or price per item goes down.
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Is it good if a company's annual sales go up while the gross profit margin goes down and the net profit figures go down also what does this mean for the company?
If company sales are increasing but gross profit as well as net profit is declining, it means that sales are not increasing as rapidly as company costs and expenses are increasing. A thorough review should be conducted to analysis the situation and selling price should be adjusted according to increase in cost prices.
What will a change in price do for a product?
It will affect its sales. If the price goes up, depending upon what the product is the sales may go down. When the price goes down, the sales will probably go up.
Can anyone in America define capitalism?
A situation where private money and wealth is used in the production and sales of goods, where the profit goes back to private stockholders.
How are jobs being affected by the economy?
super cool Daniel powers Companies are being forced to lay off employees due to the fact that sales go down. When sales go down, income goes down and the company has to get rid of employees to avoid paying salaries. Companies are being forced to lay off employees due to the fact that sales go down. When sales go down, income goes down and the company has to get rid of employees to avoid paying salaries.
What are a firms profit at the break-even point?
Break Even Point: It is the point where firm's at no profit no loss situation/position that's why it is called break-even point. So at this point firms has no profit no loss and it is the point where firm's able to achieved all expenses of operation and after this point whatever sales made by firm goes to profit of company.
Explain why the price in competitive markets down at the equilibrium intersection of supply and demand explain what happens if the market price starts out too high or too low?
The effects of supply and demandAccording to the law of demand, as the price for an item goes up, the quantity demanded by people goes down, and as the price goes down, the quantity demanded goes up. On the other hand, from the producers point of view (the law of supply), if he's making more profit, he'll want to make more, and if he's making less profit he'll want to produce less of it.So as the price and profit goes up, the quantity supplied goes up also.Therefore the best amount to charge is the equilibrium price; where the consumer will be happy to buy it and the producer will be happy to sell it.That is why the price in competitive markets settles down at the equilibrium intersection of supply and demand.If the market price starts out too high, there will be little demand since it will be so expensive, and if the market price starts out too low, there will be little supply, because the producers are not gaining much profit from it.
What is meant by inventory valuation?
it will be like inventory at shop. shopkeeper keep on rotating his shop inventory after its safety stock goes down(by ordering ). doing this he is rotating the inventory and generates sales. if shop has 100 articles . if he rotates 50 articles thrice a week and 10 times in month. better is the profit generation.
What nicknames does Tiffany Sales go by?
Tiffany Griffiths goes by Titchy Tiff.
How much money do tesco make approximately?
Tesco make around £3 Billion per year profit They make around £2,000 every second during high shopping times. £5 a second goes down is profit!
Do accounts receivable go on an income statement?
Nope. It goes to the Balance sheet (Debtors) under Current Assets. What goes into income statement is Sales (both cash and credit). DR Debtors CR Sales. Debtor goes to B.S and Sales goes to P&L.
How is a tip similar to and different from sales tax?
a tip goes to a waiter a tax goes to the gonverment and a tip is a percent so is a sales tax
What nicknames does Rona Lean Sales go by?
Rona Lean Sales goes by Onay.
