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Gross Profit margin = 49.82% is this gross profit enough for the company to cover indirect...

Gross Profit margin = 49.82%

is this gross profit enough for the company to cover indirect costs?

what information is needed please?

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Fame Export 37 doo [Compatibility Mode] - Microsoft Word (Product Activation Failed) Homeert Page Layout ReferencesMaings ReviewVew Find AaBbCc. AaBbCcD e Replace B I ?, ?' Ay_a. : -t-, a-E . n Normal No Spaci Heading 1 Heading 2 Title Subtitle Subtle Em , Change Styles Seledt Editing Format Painter Clipboard Paragraph Styles 18 GBP GBP Profitability ratios 34.21 34.21 Return on Shareholders Funds (%) Return on Capital Employed (%) Return on Total Assets (%) Profit margin (%) Gross margin (%) Berry ratio (x) EBIT margin (%) EBITDA margin (%) 24.25 27.01 19.33 34 4.81 4.16 49.82 4.13 49.95 7.11 51.80 49.98 4.14 5.11 6.13 6.36 8.83 Operational ratios 5.02 Net Assets Turnover(x ixed Assets Turnover (x) Interest Cover (x) Stock Turnover(x Debtors Turnover (x) Debtor Collection (days) 6.53 4.81 587.81 804.97 5.37 165.35 2.21 267.17 ditors Payment (days) 14.33 10.25 Structure ratios Current ratio (x) Liquidity ratio (x) Shareholders liquidity ratio (x) solvency ratio (Asset based) (%) Solvency ratio (Liability based) (%) Asset Cover (x) Gearing %) 0.35 195.98 49.66 98.66 30.83 51.89 n.s 3.17 10.48 1.37 Per employee ratios Profit per emplovee (unit Turnover per employee (unit) Salaries Turnover Average Remuneration per employee 25,284 17,976 25,123 608,239 7.81 47,510 28,827 46,967 607,965 43,015 90,740 606,846 47,291 84,166 599,551 42,041 118,892 660,993 51,510 37,286 Shareholders Funds per employee 125,445 1%04 45 ENG01/06/2018
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Answer #1

Indirect costs are administrative expenses, selling and marketing expenses. These are deducted from gross profit. Interest expense and tax expenses are also deducted to arrive at net income. If the net profit margin is positive, gross profit is sufficient to cover indirect costs.

Only profit margin (Net income/Sales) is required to answer this question. If it is positive, it is sufficient to cover the indirect costs.

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