Compute the gross margin ratio and explain its use to assess profitability.

Q: What is the Importance of the Profit Ratio?

A: Profit ratio: Profit ratio is utilized to assess the corporation's capacity to make revenue as…

Q: What formula is used to determine net profit

A: Net profit is the actual income earned by an organization after paying all the expenses. It is…

Q: Explain an example how to calculate gross profit percentage.

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

Q: Define Gross Profit Method.

A: Definition:   Merchandise Inventory: Merchandise is the stock of goods bought by a wholesaler, or a…

Q: What is the gross profit? [ Select ] How much is the operating expense? | Select I | Select ] How…

A: Solution:- As per the above questions first we required to compute income statement. which helps to…

Q: PROFITABILITY RATIOS

A: Gross profit margin is stable for initial year but tends to reduce in future. Return on sales…

Q: List the most important assumptions of cost-volume-profit analysis.

A: Cost Volume Profit Analysis (CVP Analysis): This analysis is helpful in determining that how any…

Q: Explain the concepts of revenue, costs, break-even and profit with examples?

A: These concepts are related to variable costing in which we use variable cost to compute our…

Q: What is the possible link between the following ratios: (a) profitability and efficiency (b)…

A: SOLUTION A- Relation between profitability and efficiency ratios   Profitability ratio depicts how…

Q: Describe ratios that are used in profitability analysis.

A: Profitability ratios are a class of financial metrics that are used to assess a business's ability…

Q: Will the profit calculated on the absorption cost basis be higher or lower than the profit…

A: The key difference in profit under marginal costing and absorption costing technique comes because…

Q: How is Gross Margin % calculated?

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: Distinguish between gross profit margin, operating profit margin, and net profitmargin and provide…

A: To distinguish between the gross profit margin, operating profit margin, and net profitmargin and…

Q: Gross Margin

A: when calculating the Gross margin the cost of good sold  subtracted from the revenue generated by…

Q: PROFITABILITY Solution and answer Interpretation Gross profit margin Operating profit margin Net…

A: Solution:- 1)Calculation of Gross profit margin as follows under:- Formula as follows under:-…

Q: Why is the constant gross-margin percentage NRV method sometimes called a “joint-cost allocation and…

A: Constant gross-margin percentage NRV method: Constant gross margin percentage NRV method is a method…

Q: Compute the following ratio analysis: Operating Profit Margin Net Profit Margin Write your…

A: Current Year: Net Sales = 120,000 Operating Income = 43,000 Net Income = 35,000   Prior Year: Net…

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: Explain profitability ratios

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

Q: I need exampel on: Price - to -earning ratio Price book ratio Price to cash flow ratio

A: Price Earnings Ratio: It is the connection between an organization's price of stock and the EPS…

Q: Explain the term Gross profit margin.

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

Q: Explain an example how to calculate gross profit.

A: Gross profit is the left over revenue after deducting all direct costs of making the products or…

Q: What is the gross profit and how do i calculate it

A: Manufacturing department profit is also known as gross profit. This profit includes only costs…

Q: Find the coverage ratio and profitability ratio

A: Ratio analysis is used for measuring the financial efficiency, profitability and revenue of an…

Q: Use the attached information to complete the ratio analysis.  The Ratio Analysis is for…

A: Ratio analysis is useful to measure the financial performance of the company and helpful to make…

Q: How to calculate net profit margin in pro forma balance sheet

A: Financial statements are referred as the records of the business operations and financial…

Q: How do I calculate the gross margin value under the FIFO, LIFO, and weighted average methods.

A: Gross Margin refers to the profit earned  during an accounting period. Therefore, it is also called…

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: Use the attached information to complete the ratio analysis.  The Ratio Analysis is for Liquidity,…

A: Ratio analysis is a quantitative method of gaining insight into a company's liquidity, operational…

Q: Define Gross profit ratio.

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

Q: Find the Gross Profit

A: Direct costs are associated with the manufacturing of goods/services provided to consumers,…

Q: Compute NET Profit margin ratio

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

Q: Identify and calculate the common ratios used to assess profitability.

A: Profitability ratios:   Profitability ratios are those ratios that helps a company to access the…

Q: Describe the common profitability measures.

A: Common profitability measures include profitability ratios such as ROE, ROA, profit margin etc They…