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Is 30 percent a good profit margin?

Updated: 9/16/2023
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Tagiwirely

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Q: Is 30 percent a good profit margin?
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What is the average profit margin of the furniture industry?

Contract furniture manufacturer profit margin is between 30-35%. Distributor or "Dealer" profit margin is 20-25%.


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1.40 to 2.60.


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If James gross profit mark up is 25 percent then his margin on sales will be 20 percent.Yes Or No?

No, gross profit and markup are two different things. Gross profit is expressed as a percentage of the sales price, and markup is expressed as a percentage of the cost. For example the Gross Profit on something that costs $100 that is being sold for $143 is 30% GP. The markup on that same item is 43%. Bottom line, you can't have a "gross profit markup". There's a Gross Profile Margin, and a Markup.


Cisco systems has ttl assets 35.594biln ttl debt 9678bln net sls 22.045bln their net profit margin for the year is 20 percent while the operating profit margin was 30 percent what is their net income?

What is given is: total assets = $35,594 billion Total debit = $9,678 billion Net sales = $22,045 billion Net profit margin = 20 % Operating profit margin = 30% Find: net income EBIT ROA ROA ROE Net profit margin = net income / net sale Net income = net profit margin x net sale = 0.20 x 22,045 billion = $4409 billion EROA = EBIT /total assets = operating profit margin x net sales / total assets = 0.30 x 22,045 billion / $35,594 billion = 0.1858 = 18.58 % ROA = net income / total assets = $4409 billion / $35,594 billion = 0.1239 = 12.39 % ROE = net income / total equity = net income / (total assets - total debt) = $4409 billion / ($35,594 billion - $9,678 billion) = $4409 billion / $25,916 billion = 0.1701 = 17.01 %


Is it possible for a competitive firm to earn supernormal profit in the long run and why?

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