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The acceptable ratio of travel expenses to sales can vary by industry, but a common benchmark is between 5% to 10%. This ratio helps ensure that travel costs are manageable relative to generated revenue. Companies should regularly evaluate their travel expenses in relation to sales performance to maintain profitability and optimize spending. Adjustments may be necessary based on specific business models or market conditions.
What else can I help you with?
The margin of safety is equal to?
a. sales-net operation incomeb. sales-(variable expenses/contribution margin)c. sales-(fixed expenses/contribution margin ratio)d. sales-(variable expenses + fixed expenses)
What is selling and distribution expenses ratio?
The selling and distribution expenses ratio is a financial metric that measures the proportion of a company's selling and distribution expenses relative to its total sales revenue. It is calculated by dividing total selling and distribution expenses by total sales, often expressed as a percentage. This ratio helps assess the efficiency of a company's marketing and distribution efforts, indicating how much of each sales dollar is spent on these activities. A lower ratio typically suggests better efficiency, while a higher ratio may indicate higher costs associated with generating sales.
What is rent to sales ratio?
The rent-to-sales ratio is a financial metric used to evaluate the proportion of a business's rent expenses relative to its total sales revenue. It is calculated by dividing the total rent paid by the total sales generated over a specific period, usually expressed as a percentage. A lower ratio indicates that rent is a smaller burden on sales, while a higher ratio may suggest that rent expenses are disproportionately high compared to revenue. This ratio is particularly useful for retail businesses in assessing their leasing costs in relation to their sales performance.
If the sale price per unit is 21.50 the variable expense per unit is 16.75 and the breakeven sales in dollars is 634250 what are the total fixed expenses?
Total fixed expenses = breakeven sales * Contribution margin ratio Contribution margin ratio = (21.5 - 16.75 ) / 21.5 = 0.22 Total fixed expenses = 634250 * 0.22 = 139535
What are included in expenses?
payroll, sales commissions, employee benefits and pension contributions, transportation and travel, amortization and depreciation, rent, repairs, and taxes are included in an expenses.
The margin of safety is equal to?
a. sales-net operation incomeb. sales-(variable expenses/contribution margin)c. sales-(fixed expenses/contribution margin ratio)d. sales-(variable expenses + fixed expenses)
What is average expenses to sales ratio for a Medical representative?
I think I don't know.
How do you calculate market expense to sales ratio?
Market expense to sales ratio is calculated by dividing selling and administrative expenses by total sales. ------------------------ Khairul Alam Institute of Business Administration University of Dhaka
How do you determine the activity and dollar sales at the break even point?
The activity level at the break even point = fixed expenses/unit contribution margin Dollar sales at the break even point = fixed expenses/contribution margin ratio contribution margin ratio = contribution margin/sales
What is an entry in a cell that contain text such as 2011 Sales or Travel Expenses?
lables
If the sale price per unit is 21.50 the variable expense per unit is 16.75 and the breakeven sales in dollars is 634250 what are the total fixed expenses?
Total fixed expenses = breakeven sales * Contribution margin ratio Contribution margin ratio = (21.5 - 16.75 ) / 21.5 = 0.22 Total fixed expenses = 634250 * 0.22 = 139535
What are included in expenses?
payroll, sales commissions, employee benefits and pension contributions, transportation and travel, amortization and depreciation, rent, repairs, and taxes are included in an expenses.
What is the average ratio between earnings and expenses for a commissioned sales representative?
It varies depending on the company. It usually ranges from 6-8%
What is total cost by sales coverage ratio?
The total cost by sales coverage ratio is a financial metric that compares the total costs incurred by a business to the sales generated within a specific period. It helps assess the efficiency of sales operations by indicating how much cost is associated with each dollar of sales. A lower ratio suggests better cost management and operational efficiency, while a higher ratio may indicate potential issues in controlling expenses relative to sales revenue. Companies often use this ratio to evaluate performance and make informed decisions about resource allocation.
What is an operating margin in business?
In business, an operating margin is the revenue of a business minus the operating expenses. It is the ratio of operating income divided by net sales.
What expenses are included in selling and distribution expenses?
sales commission
Formula for calculating net profit?
Sales Less: Cost of sales Gross Profit Less: Admin Expenses Selling Expenses Other Expenses Net Profit
