Distinguish between gross profit margin, operating profit margin, and net profit margin and provide the formula for each ratio?

Answered step by step

Verified Expert Solution

Question

87 users unlocked this solution today!

Distinguish between gross profit margin, operating profit margin, and net profit margin and provide the formula for each ratio?

Step by Step Solution

★★★★★

3.46 Rating (169 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Link Copied!

Step: 1

Gross Profit Margin is used to determine how much gross profit is generated by each do... View full answer

blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

100% Satisfaction Guaranteed-or Get a Refund!

Step: 2Unlock detailed examples and clear explanations to master concepts

blur-text-image_2

Step: 3Unlock to practice, ask and learn with real-world examples

blur-text-image_3

Document Format ( 1 attachment)

498-B-F-E (771).docx

120 KBs Word File

Claim Your Hoodie Now!

Recommended Textbook for

Entrepreneurial Finance

Entrepreneurial Finance

Authors: Philip J. Adelman; Alan M. Marks

6th edition

9780133099096, 133140512, 133099091, 978-0133140514

More Books

flashcard-anime

Study Smart with AI Flashcards

Access a vast library of flashcards, create your own, and experience a game-changing transformation in how you learn and retain knowledge

Explore Flashcards

Students Have Also Explored These Related Finance Questions!

Q:

Distinguish between gross profit as a percentage of cost and gross profit as a percentage of sales prices. Convert the following gross profit percentages based on cost to gross profit percentages...

Answered: 3 weeks ago

Q:

Explain the difference, if any, between gross profit margin and profit margin.

Answered: 3 weeks ago

Q:

Distinguish between operating profit and net profit.

Answered: 3 weeks ago

Q:

ME-1" Ltd. acquired 80% equity shares of You-2nd Ltd. on 30/04/2020 for a cost of GHS60,000. At that time the general reserves were GHe6,000 respectively.

Answered: 3 weeks ago

Q:

Suppose that the n variablesX1, . . . , Xn form a random sample from the uniform distribution on the interval [0, 1] and that the random variables Y1 and Yn are defined as in Eq. (3.9.8). Determine...

Answered: 3 weeks ago

Q:

OnDecember31,afiredestroyedmostofthemerchandiseonhandatWinker'sWinkInc.Thefollowinginformationisavailable:Salesof$900,000;grossprofitis40%(basedonretail);...

Answered: 3 weeks ago

Q:

Describe several learning and study strategies that help students develop their metacognitive abilities.

Answered: 3 weeks ago

Q:

Shankar Company uses a perpetual system to record inventory transactions. The company purchases inventory on account on February 2, 2015, for $40,000, with terms 3/10, n/30. On February 10, the...

Answered: 3 weeks ago

Q:

Assume the Schwartz Inc is a public company with a calendar year end. Schwartz must determine when and how it will adopt the revised revenue standard. A. In what period must Schwartz firt apply ASC...

Answered: 3 weeks ago

Q:

1. Work up a buying plan to use when buying from Ghuman's. 2. How should Hughes distribute the allotted open-to-buy dollars among the available sizes, colors, and fabrics? Synopsis: A department...

Answered: 3 weeks ago

Q:

The table below illustrates the demand and supply schedules for seats on air flights between two cities: What are the market price and equilibrium quantity in this market? Now suppose that federal...

Answered: 3 weeks ago

Q:

In the research article "Alternative Perspectives in the Organizational Sciences: "Inquiry from the Inside" and "Inquiry from the Outside," Evered and Louis talk about both modes of inquiry as a way...

Answered: 3 weeks ago

Q:

Correcting negative trends in KPIs requires a robust Corrective Action procedure. Research and provide a narrative on a Corrective Action procedure. Ensure that you include the connecting process....

Answered: 3 weeks ago

Q:

(i) (ii) (iii) Delphine & Co. is a law firm which had been operating for the past 20 years. The firm has over 200 active clients, mainly commercial organisations, and the clientele is still growing....

Answered: 3 weeks ago

Q:

Share which technologies (e-learning, simulation, virtual reality, podcasts, etc.) most appeal to you. Explain why they appeal to you.

Answered: 3 weeks ago

Q:

Imagine your boss wants to engage you to do extra work for the next few weeks on a special project of hers but she doesn't have additional budget to pay you. What kind of recognition or non-monetary...

Answered: 3 weeks ago

Q:

Your new small business has really grown, but now it needs a substantial infusion of capital. A venture capital firm has agreed to invest the money you need. In return, the venture capital firm will...

Answered: 3 weeks ago

Q:

Vince, Inc. has developed and patented a new laser disc reading device that will be marketed internationally. Which of the following factors should Vince consider in pricing the device? I. Quality of...

Answered: 3 weeks ago

Q:

An incompressible flow field is characterized by the stream function \(\psi=3 A x^{2} y-A y^{3}\), where \(A=1 \mathrm{~m}^{-1} \cdot \mathrm{s}^{-1}\). Show that this flow field is irrotational....

Answered: 3 weeks ago

Q:

Briefly explain how changes in the conversion times of the components of the C3 can be interpreted.

Answered: 3 weeks ago

Q:

What is the meaning of leverage ratios? What ratios are used for relating total debt to a ventures assets and/or its equity?

Answered: 3 weeks ago

Q:

What is the importance of the relationship between a ventures current liabilities and its total debt?

Answered: 3 weeks ago

Q:

Suppose that you sell short 200 shares of Intel, currently selling for $50 per share, and give your broker $6,000 to establish your margin account. a. If you earn no interest on the funds in your...

Answered: 3 weeks ago

Q:

P12-14 (similar to) Question Help Related to Checkpoint 12.1) (Calculating project cash flows and NPV) You are considering expanding your product in the currently consists of skateboards to includes...

Answered: 3 weeks ago

Q:

Illustration 2 Sita, Rita and Meeta are partners sharing profit and losses in the ratio of 2:2:1 Their balance sheet as on March 31, 2017 is as follows: Balance Sheet of Sita, Rita and Meeta as on...

Answered: 3 weeks ago

Previous Question Next Question