That the selling price is 5% or 1/20 more than the cost.
devide by 20
ROA = Net Profit Margin * Asset Turnover Asset Turnover = ROA/Profit Margin = 13.5/5 = 2.7%
A 5 percenter is a sale in which the seller makes a profit of 5 percent, which is 5 cents from each dollar spent.
5 percent
It's probably 33 1/3 percent. Overhead - meaning rent, utilities & wages for employees takes a third. Replacing the items you sold takes a third. Your profit should also take a third.
Profit = (profit percentage / 100) x gross income
20 %
Profit (gain) % = Profit / C.P. *100
Given: ROA = 10%, Profit margin = 2%, ROE = 15% ROA = Profit margin x Asset Turnover Therefore, Asset Turnover = ROA / Profit margin = 10 / 2 = 5% ROE = Profit margin x Asset Turnover x Equity multiplier 15 = 2 x 5 x Equity Multiplier 15 / 10 = Equity Multiplier Equity Multiplier = 1.05
rs13.80
Given: ROA = 10%, Profit margin = 2%, ROE = 15% ROA = Profit margin x Asset Turnover Therefore, Asset Turnover = ROA / Profit margin = 10 / 2 = 5% ROE = Profit margin x Asset Turnover x Equity multiplier 15 = 2 x 5 x Equity Multiplier 15 / 10 = Equity Multiplier Equity Multiplier = 1.05
According to Chron, the average profit margin for furniture retailers is 2 percent. This is up from other retailers who normally have a 0.5 percent profit margin.