Income statement: Sales $10,000 Cost of goods sold 9,200 EBIT &n

Question

Question

Income statement: Sales $10,000 Cost of goods sold 9,200 EBIT &n

Income statement:

Sales $10,000

Cost of goods sold 9,200

EBIT $ 800

Interest (10%) 400

EBT $ 400

Taxes (40%) 160

Net Income $ 240

What is Operating Profit Margin?

What is Net Profit Margin?

business finance

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Answer 1

Answer #1

1)

Operating profit margin = (EBIT / sales )* 100

Operating profit margin = (400 / 10,000) * 100

Operating profit margin = 4%

2)

Net profit margin = (EBIT / sales )* 100

Net profit margin = (240 / 10,000) * 100

Net profit margin = 2.4%

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Answer 2

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Income statement: Sales $10,000 Cost of goods sold 9,200 EBIT &n

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Income statement: Sales $10,000 Cost of goods sold 9,200 EBIT &n

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Income statement: Sales $10,000 Cost of goods sold 9,200 EBIT &n

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