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Q: What is the answer for A company have a margin of safety of 40 lakhs and earns an annual profit of 10 lakhs If the fixed cost amount to 20 lakhs annual sales will be how much?
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What is net profit margin?

Net Profit margin is an indicator of the profitability of an organization. This refers to the actual amount of profit the company makes after deducting taxes and operating expenses. All company's strive to attain a good or rather high net profit margin. A net profit margin is also an indicator of the ability of the organization to control cost and also a good pricing strategy.Formula:Net Profit Margin = (Net Profit (After Taxes)/ Revenue) * 100%Note: It is easy to confuse gross profit margin and net profit margin. Gross profit is the amount of money left after paying for the operating expenditure. Net profit is the amount of money left after paying for operating expenses as well as government taxes. This is the actual amount of profit that goes into your pocket.


What does profit margin mean?

Profit margin means the amount of profit you make measured in a percentage. This can include:Gross Profit marginNet Profit marginMarkup Profit margin


What is the difference of gross profit and gross margin?

Gross profit is the amount of profit in dollars...gross margin is the % profit to expenses


Profit in a sentence?

I am trying to expand the company's profit margin.


What is low profit margin?

A profit margin is the amount you make on an item verses that cost of the initial purchase i.e. Bought a widget at 100 sold at 200 profit 100 Low profit margin is when a very low amount is made on the item.


profit margin?

it is also known as net profit margin. this ratio shows how much net income a company earns from operations. a higher ratio implies higher profit earned. profit margin is calculated as follows:profit margin = (Net income / Revenue) * 100


Candy Company had sales of 240000 and cost of goods sold of 108000 What is the gross profit margin?

Gross profit = sales - cost of good sold Gross profit margin = gross profit / sales *100 Gross profit = 240000- 108000 = 132000 Gross profit margin = 132000/240000 *100 Gross profit margin = 55%


What is measured by profit margin?

Profit, is called the difference of amount between purchase price and sale price. Through the profit margin we come to know that how the business is running. Or, how successful (profitable) IS this business?


Can a profit margin ratio be negative?

A profit margin can be negative if the company had a negative net income. For eample if the company had $100,000 in net sales, but their net income was ($10,000) then (10,000)/100,000 = (10%) or negative 10%.


What is the annual profit for the nike company?

about 5 dollars


Profit margin ratio?

Profit margin is a ratio of probability calculated as net income divided by revenues, or net profits divided by sales. It measures how much out of every ringgit of sales a company actually keeps in earnings. Profit margin is very useful when comparing companies in similar industries. A higher profit margin indicates a more profitable company that has better control over its cost compare to its competitors.


If a shoe company had sales of 24000 and cost of goods sold of 10800 What is the gross profit margin?

The Gross Profit is the amount in excess of the cost of goods sold. To get this we simply take sales $24,000 and subtract $10,800 to find a gross profit of $13,200