Net Profit Before Tax(N.P.B.T.) = Total sales - Total Expenses.
You take the Earning before interest and taxes (EBIT)/sales=Operating profit margin
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.
You just have to do all the calculations backwards. 24,000 divided by ( 1 - tax rate) = Net income before taxes. Net Income before Taxes + Fixed Expenses + Operating Expenses = Gross Profit Gross profit divided by (1 - variable expense rate) = Total Sales
Gross and Net profit are virtually the same. They both calculate EBT, earnings before taxes - all overhead and salaries.
Your income before taxes is your operating income, and your income after taxes is your "net" income. * + Net Sales (Sales - Returns) * - Cost of Goods Sold * ------------------------------------ * = Gross Profit (Gross Margin, Gross Income) * - Operating Expenses * ------------------------------------- * = Operating Income * + Gains (not related to usual operations) * - Losses (not related to usual operations) * ----------------------------------------------------- * = Earnings before Interest and Taxes * - Interest * - Taxes * ------------------------------------------------------ * Net Income
Gross Profit Margin = Gross Profit/Revenues Net Profit Margin = Net Profit/Revenues
Net profit margin is calculated as net income divided by sales.
net profit/sales
The profit margin ratio is calculated by dividing net profit by total revenue and then multiplying by 100 to express it as a percentage. The formula is: Profit Margin = (Net Profit / Total Revenue) × 100. Net profit is derived from total revenue minus all expenses, taxes, and costs. This ratio indicates how much profit a company makes for every dollar of revenue generated.
Net sales - CoGS = Gross Profit Gross Profit - other expenses = Net profit before tax Net profit before tax - tax amount = Net profit after tax
Net Income = Sales - Gross profit Gross Profit - Cost of Production = Net Income
'Compensation' - 'Pay' - 'Salary' - 'Gross income before taxes' - 'Net profit acfter taxes' - 'Remuneration' - etc....