How is the profit margin on sales calculated?

Q: What is Day's-sales-outstanding ratio?

A: Ratio analysis: The analysis of a company using the financial ratios and comparing its trends and…

Q: How much is the gross profit variation due to

A: Heythere since you have posted m

Q: In generating a pro forma balance sheet, on what is the percentage of salesmethod based?

A: Balance Sheet is one of the financial statements that summarize the assets, the liabilities, and the…

Q: How does the lower of cost or market relate to profit margins?

A: Answer: The lower cost or market implies that, depending on how historical costs and market costs…

Q: net sales is

A: Net Sales is the Revenue that is reported in the profit and loss account of the entity  The formula…

Q: Define sales returns.

A: Sales:   It is the goods and services sold by one company to their customers for a period.

Q: What is the formulae to find New sales level?

A: Break-Even point (sales dollars) = Fixed Costs ÷ Contribution Margin.        or

Q: What financial ratio is predominantly used to determine profitability?

A: Return on Investment: Return on Investment (ROI) is a performance measuring ratio utilized to assess…

Q: All of the following are the factors affecting the gross profit except O cash flow O volume O…

A: Gross Profit = Sales revenue - Cost of goods sold

Q: What is Operating Profit Margin and how is it Calculated? What is a high quality of earnings?

A:

Q: What does the gross profit percentage measure, and how is it calculated?

A: Gross margin percentage: The percentage of gross profit generated by every dollar of net sales is…

Q: What's the difference between the profit margin and gross margin ratio?

A: Ratio is the arithmetic relationship between two figures. Accounting ratios shows the…

Q: What is meant by purchase return and sales return?

A: Purchase return:A purchase return is a transaction that occurs when the buyer of the goods (for…

Q: What would be the sales value or turnover corresponding to the threshold of profitability

A: Sales turnover:  It is the company's total amount of services / products sold over a given period of…

Q: What does the price earning ratio indicate?

A: Price to earnings ratio (P/E ratio) compares the price with earnings per share. It will be…

Q: Explain the Sales Comparison Approach?

A: Sales comparison approach is comparative market analysis that compares a property to other…

Q: How do I get the sales formula?

A: Sales is the total revenue earned by the business from the inventory sold during the period.

Q: Discuss some financial variables that affect the price-earnings ratio?

A: The price-Earning Ratio refers to the ratio between earning per share and the current market price…

Q: Define what net sales?

A: Net sales means the amount of revenue earned from selling the goods or services in which business…

Q: What is meant by the term sales mix?

A: Sales Mix: Sales mix is the relative proportion or ratio of a business's products that are sold.…

Q: WHAT IS THE TOTAL SELLING AND DISTRIBUTION EXPENSES

A: Selling and distribution expenses includes all the expenses incurred for making a sale and providing…

Q: alculate the gross profit ratio and net profit ratio?

A: The gross profit ratio is a financial ratio that evaluates the performance and efficiency of a…

Q: What is sales revenue? How will you calculate it?

A: Answer 1) The amount received by the business entity by offering and selling the goods &…

Q: Explain profitability ratios

A: SOLUTION:- A profitability ratio is a measure of profitability, which is a way to measure a…

Q: What is gross profit? How do you calculate it?

A: Gross margin (gross profit): Gross margin is the amount of revenue earned from goods sold over the…

Q: Explain the calculation procedures for and significance of return on sales.

A: The return on sales (ROS) ratio is a statistic for evaluating a business's operational efficiency.…

Q: Explain profit margin on sales

A: Profit margin on sales is calculated by using the following formula: Gross Profit/Sales Revenue*100…

Q: Explain the term Gross profit margin.

A: Profitability ratios: Profitability ratios are the metrics used to measure the profit generating…

Q: What is net profit margin?

A: The margin of net profit is equal to the amount of income produced by the net sales or gains. For a…

Q: Sales return is a?

A: Suppose a manufacturing entity sales 10,000 units($50,000) of erasers to wholesalers, then the buyer…

Q: Why does the sales value at splitoff method use the sales value of the total production in the…

A: Split-off Point: Split-off point is the point in production process where joint products are capable…

Q: What is gross profit margin?

A: The method to analyze the performance of a company through its profitability is term as the…

Q: What are trade margins? How do they relate to thepricing for a produce, of goods?

A: A product is manufactured so that it can be sold to the consumer for the consumption purpose.…

Q: How is Profit Margin calculated and what does It measure?

A: Note: Since you have asked multiple questions, we will solve the first question. To get the…

Q: It is the net after tax ratio with sales revenues?

A: Sales revenue is the revenue which has been earned by the company for the selling of the products or…

Q: What is the gross profit margin? Higher ratio or lower ratio

A: Ratio analysis can be defined as the comparative analytical tool. It helps to determine the…

Q: The transfer price is a revenue to sales devision and cost to the buying devision. Say true or False…

A: Transfer price is a price at which a transaction of two related divisions of the same corporation…

Q: Compute NET Profit margin ratio

A: Net profit margin ratio = Net Income/ Revenue * 100

Q: What does the price-earnings ratio measure?

A: Formula Price earning ratio = Market Price per shareEarnings per share

Q: What is the difference between gross profit method & the retail method?

A: Gross Profit Method:-This method estimates the value of inventory by applying historical gross…

Q: Define Selling profit.

A: Net income: Net income is the excess amount of revenue that arises after deducting all the expenses…

Q: Define Profit margin on sales.

A: Financial ratios are used to interpret the financial statements. Each financial ratio helps in…

Q: Operating leverage measures the: Change in profit when sales changes. Change in Contibution when…

A: Solution: Operating leverage = Contribution margin / Net income  Therefore Operating leverage…

Q: How to get or compute the Net sales?

A: Net sales can be calculated by deducting sales returns and sales discounts.