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Profit Margin

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βˆ™ 11y ago
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Q: What is Net income divided by net sales is equal to?
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Related questions

How do you calculate the net sale margin?

Net sales divided by income


What is profit margin ratio?

net income divided by sales


How do you Calculate Net Profit Margin?

Net profit margin is calculated as net income divided by sales.


How do you calculate sales from net income percentage?

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


Is net sales and and net income the same thing?

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.


Does gross profit minus expenses equal net income?

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


What is the level of sales at which revenues equal expenses and net income is zero?

Break even point!


Can you show me how to calculate sales in dollars to earn after tax net income of 24000?

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


What is rate of return on net sales ratio?

Rate of Return on Net Sales = (Net Income) / (Total Sales)


If profit margin represents a relationship between net income and net sales what outcome would you predict if there was an increase in net income although no change in net 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).


What is The level of sales at which revenues equal expenses and net income is zero called?

break even point


Is net sales the same as net income?

Export benefit needs to be added in the net income