Net sales divided by income
net income divided by sales
Net profit margin is calculated as net income divided by sales.
Sales can be calculated by using net income percentage because net income is always reported as a percentage of sales. For exmaple net income of 20 is a 20% of sales so sales will be as follows: 20% sales = net income Sales = Net income / 20 * 100 Sales = 20 /20 * 100 = 100 So Sales = 100
Net sales and Net Income are not of the same thing. Net sales is sales less its contra accounts (sales returns and allowances, sales discounts). On the other hand, net income or profit is net sales less the expenses.
Yes, gross profit minus expenses equal to net income as proved by following: Sales xxxx less: Cost of sales xxxx Gross profit xxxx Less: Admin & Selling expenses xxxx Other expenses xxxx Net Income xxxx
Break even point!
You just have to do all the calculations backwards. 24,000 divided by ( 1 - tax rate) = Net income before taxes. Net Income before Taxes + Fixed Expenses + Operating Expenses = Gross Profit Gross profit divided by (1 - variable expense rate) = Total Sales
Rate of Return on Net Sales = (Net Income) / (Total Sales)
The excess net income is the result of Interest income or gain in assets or miscellaneous revenue. This type of transactions occur not based on the sales of goods or services. They are deducted after the gross sales (net sales - expenses).
break even point
Export benefit needs to be added in the net income