Explain profit margin

Q: xplain the impact of risk, uncertainty, and changing variables on cost-volume-profit analysis.

A: Cost-volume-profit analysis is one of the decision accounting analytical approaches that aid in…

Q: Profit

A: Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

Q: QUESTION 2 (a) Explain the following terms: () margin of safety (i) contribution margin (ii) (b)…

A: As per the honor code, we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit…

Q: Define cost-volume-profit analysis?

A: Cost-Volume-Profit Analysis (CVP Analysis): CVP Analysis is a tool of cost accounting that measures…

Q: Profitability

A: Profitability is the prime purpose of every business. Every corporation tries to maximize its…

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: Explain price/cash flow ratio

A: Answer: Price to cash flow is determined through the division of price per share by cash flow per…

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: 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: Profit will by $

A: This whole question is based on the concept Relevant cost What is Relevant cost? In simple words,…

Q: Profit margin is equal to ,

A: Net profit is the profit generated after deducting all operating and non-operating costs from the…

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: Describe the approaches of target profit.

A: Target Profit: It refers to the desired amount of profit that a company expects to achieve by the…

Q: What are the three components that can be described as the profit margin?

A: Income minus expenses gives us profit. The profit margin is the percentage of profits on sales or…

Q: contribution margin ratio

A: The contribution margin is the amount left after subtracting the variable costs from the selling…

Q: What are the important points to remember in preparing the breakeven point graph? The…

A: Break-even point is the point at which company neither earns profits nor incurs loss. Break-even…

Q: cost-volume-profit relationship

A: Sales - Variable expenses - Fixed expenses = Profit, where,  Sales - Variable expenses =…

Q: What is net operating margin ?

A: operating profit is the companies earnings after deducting operating expenses.  operating profit =…

Q: 1) Cost-volume relationship states that maximum profit is reached by maximizing revenue. Select one:

A: the correct option with adequate explanation are as follows

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: Define basic earning power (BEP) ratio

A: The formula to compute basis earning power ratio as follows:

Q: How does the contribution margin affect the cost-volume-profit analysis?

A: Cost Volume Profit analysis means the breakeven analysis which generally used to determine the break…

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: How is cost-volume-profit analysis useful?

A:

Q: Define “Market Value Added (MVA)” and “Economic Value Added(EVA).”

A: Introduction: Economic value added (EVA) and Market value added (MVA) are computations utilized to…

Q: In a profit diagram, the safety margin can either be expressed in kronor or some form of volume.…

A: Margin of safety is a financial metric which represents the number of units beyond the break-even…

Q: What is gross profit margin?

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

Q: Explain an example how to calculate contribution margin ratio.

A: Contribution margin ratio:   Contribution margin ratio is the difference between the company’s sales…

Q: profit margin ratio

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

Q: 2. What is cost-volume-profit analysis and what are the important assumptions of this analysis?

A: Profit analysis entails dissecting a company's reported profit figure to determine the true extent…

Q: ) Calculate New Profit Sharing Ratio and Sacrificing Ratio

A:

Q: Define solvency and profitability. How are they alike?

A: Answer: Solvency is status of company when the asset is higher than liabilities. Profitability  is…

Q: Discuss the Cost- Volume- Profit assumptions

A: Cost-volume-profit analysis: It is also called break-even analysis which measures the impact on…

Q: profit margin

A: Profit margin = Net income * 100/Revenue

Q: Find the Gross Profit

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

Q: Summary for Cost Volume Profit Analysis

A: Cost Volume Profit Analysis: It is the technique of managerial accounting which examines how changes…

Q: Compute NET Profit margin ratio

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

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: Profit maximization

A: Introduction: The term financial management refers to the art of planning, organizing, directing…