Define Profit margin on sales.

Q: What does inventories /sales ratio mean?

A: An accounting metric used to measure liquidity, solvency, efficiency etc. of a business entity is…

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: 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: 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: net sales is

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

Q: Explain profit margin

A: Profit margin is one of the benefits proportions that's generally utilized to assess the level to…

Q: net sales

A: We know that  Net Sales = Sales revenue - Sales returns - Sales Allowances and Discounts

Q: Define the term sales mix.

A: The sales mix is a calculation that determines the proportion of each product a business sells…

Q: Describe the ways to increase sales and profitability

A: Sales indicate the revenue generated by the business entity in consideration of offering their…

Q: Define sales returns.

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

Q: PROFITABILITY RATIOS

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

Q: The formula "(Sales Revenue – Cost of Goods Sold) + Sales Revenue" produces:

A: The income statement represents the net profit or net loss of the company that is calculated by…

Q: Describe analyzing of profit using contribution margin.

A: The contribution margin ratio is the percentage of difference in a company's sales and variable…

Q: Describe following:* Market approach* Income approach* Cost approach

A: Market Approach:   Market approach is a method used to assess the value of an asset depending on the…

Q: What is the difference between Cost-Volume Profit graph and Profit-Volume graph?

A: Introduction:- Cost-Volume Profit graph displays the relationship between the cost of units…

Q: What is the percentage of sales approach

A: Percentage of Sales Approach This is an important tool in which the management are using for the…

Q: Explain percent of sales method.

A: Accounts receivable: Accounts receivable refers to the amounts to be received within a short period…

Q: culate sales

A: Current month Ending Inventory Will be the next month beginning inventory.

Q: Name the accounting principle that requires inventories to be reported at sales price less…

A: Conservatism Principle This is the concept that you should record expenses and liabilities as soon…

Q: How is the profit margin on sales calculated?

A: Profit margin on sale: it's categorized under profitability ratio , generally this ratio is used to…

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: How to get or compute the gross sales

A: Gross sales is presented in income statement.

Q: Explain the Sales Comparison Approach?

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

Q: What is operating profit margin?

A: The operating profit is the profit earned during the year after deducting all the operating expenses…

Q: How do we calculate cost of sales

A: The net sales are calculated as difference between sales and sales discounts.

Q: Calculate Gross profit ratio

A: Gross Profit is the difference between Sales Revenue and Cost of Goods Sold.  Gross Profit = Sales…

Q: Calculate the cost efficiency - profit margin ratios

A: Return on Equity = Net Income available for Shareholders/Total Equity 2019 = 418,916/9,538,652 =…

Q: Gross profit from sales is the difference between

A: Gross profit means the excess of revenue against the cost of good sold from the operating activity…

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: 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: How to calculate cost of sales

A: Introduction: Ending Inventory: The unsold inventory for the period is called Ending Inventory.…

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: profit margin ratio

A: Profit margin ratio = Net income * 100/Net sales

Q: Profits -to-Sales relationships are defined as profit margins. Select one: a. True b. False

A: Ratio analysis is referred as the quantitative method of understanding company’s liquidity,…

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: Build an influence diagram that illustrates how to calculate profit.

A: Profit : Every business motive is to earn profit.  Profit is generally earned when the business…

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

A: Gross margin ratio is the measure of profitability of the business and it depicts a ratio between…

Q: Define Selling profit.

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