A component of operating efficiency and profitability, calculated by expressing net profit as a percent of net sales, is the:   a.Price earnings ratio. b.Profit margin ratio. c.Sales turnover. d.Acid-test ratio.

Q: What is operating margin ? a) It is equal to ( gross profit on sales – operating expense ) / net…

A: Operating Margin is the profitability ratio which shows the percentage of profit earned by the…

Q: Under the gross profit method, if the gross profit rate is based on cost, the cost of sales is…

A: The gross profit method is the one wherein the amount of inventory is measured using the gross…

Q: Give the solution in each letter: a. How much is the total net revenue? b. How much is the total…

A: Hi student Since there are multiple subparts, we will answer only first three subparts.

Q: The ratio which indicates the profit that a company makes after paying variable costs of production…

A: Variable costs are those costs which changes with change in level of activity like all operating…

Q: Determine the gross profit from sales for the period.

A: Revenue:   It refers to the earnings of an organization form business operations for a particular…

Q: Contrast the income statement effect of LIFO versus FIFO(on Cost of Goods Sold and Gross Profit)…

A: Last-in-First-Out (LIFO): In this method, items purchased recently are sold first. So, the value of…

Q: Cost-to-retail ratio under the cost method is calculated: A. After both markups (net) and markdowns…

A: Both markups and markdowns is used to calculate the ratio.

Q: the dollar amount of sales needed to achieve a target operating income is computed by what

A: The break even sales units are the sales where business earns no profit no loss.

Q: Using the table below, create a line chart in which profit or loss is plotted on the Y-axis and…

A: Selling price per Unit= $16 Variable Cost per unit= $11 Fixed cost in total= $505000

Q: Profit volume ratio is used for the calculation of: Select one: O a. Profit at given sales O b.…

A: The profit volume ratio is also known as contribution margin ratio.

Q: Define return on sales ( or profit margin).

A: Financial ratios represent the accounting ratios computed by the management by using elements of…

Q: The percentage of profit obtained from the sale of a certain product within a period is called …….…

A: Company makes sales of its products for the purpose of profit. For example, goods costing $10,000…

Q: Explain percent of sales method.

A: Accounts receivable: Accounts receivable refers to the amounts to be received within a short period…

Q: 1. Based on segment margin and average assets, compute the profit margin.  2. Based on segment…

A: Sales 9,000,000 Less: Variable costs 3,650,000  Contribution margin 5,350,000 Less: Direct…

Q: What is Gross Margin? a)     (Net Sales  - Cost of Sales – Operating Expenses) / Net Sales b)…

A: Solution:- Introduction;- Gross margin is the difference between Net sales and cost of goods sold.…

Q: A manager who wants to determine the percentage impact on income of a given percentage change in…

A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…

Q: Which one of the following is defined, at any given sales volume, as the ratio of the total…

A: Contribution margin is Sales less variable expenses at any given volume. Operating profit is…

Q: Help question 28

A: Operating leverage: It is a financial ratio that measures a company’s operating income to its sales…

Q: DIRECTION: COMPLETE THE FOLLOWING TABLE SELLING PRICE , COST, MARKUP, MARK-UP BASED ON SELLING…

A: Mark up refers to the difference between the selling price and cost price of the goods and services…

Q: Required: 1. Use appropriate Excel formulas to perform vertical analysis and complete the "Percent"…

A: Vertical analysis is done to determine the change in line items with respect to the other line item.…

Q: The ratio of Gross profit expressed as a percentage of sales is called: a. Gross Profit Ratio O b.…

A: Sale represents the amount of goods sold by an entity.

Q: the dollar amount of sales needed to achieve a target operating income is computed by

A: Target operating income is the desired income which the business wants to earn by selling products…

Q: Calculate the profit margin ratio for each company.

A: We know that profit margin ratio is the percentage revenue that is left out to the entity after…

Q: In vertical analysis, the relevant base for cost of goods sold is which of the following?…

A: Cost of sold is a term reported in the income statement. So the relevant base for it should also be…

Q: Indicate the effects on gross profit the changes in volume, unit selling price, and unit cost. Write…

A: Selling price and sales volume have a direct relationship with the Gross profit i.e. increase in…

Q: Payable turnover is a measure of cost ot goods sold and accounts payable. Select one: O True False

A: Payable turnover ratio is calculated as follows -  cost of goods sold / average accounts payable

Q: Cost-volume-profit-analysis can be used to determine expected income from predicted sales and cost…

A: Cost volume profit analysis -   generally cost volume profit analysis is used to determine the…

Q: I. Presented here are the components in Sanders Company's income statement. Determine the missing…

A: As requested to answer C& D sub parts , we are answering only those two sub parts.

Q: Profits -to-Sales relationships are defined as profit margins. Select one: a. True b. False

A: Ratio analysis is referred as the quantitative method of understanding company’s liquidity,…

Q: The difference between net sales and cost of goods sold is called (a) gross profit.(b) net…

A: Gross profit/margin: Difference between the sales and the cost of goods sold is called gross margin.…

Q: Profit or Loss is computed by subtracting cost / expenses from – a. income/revenue c. sales b.…

A: Answer 1) Profit or Loss is computed by subtracting cost / expenses from: income/revenue: This…

Q: The COGS is estimated by deducting the gross profit from sales revenue. Distinguish between gross…

A: Gross profit is calculated by deducting the cost of goods sold from the sales. The percentage of…

Q: Sales revenue min a. gross margin income from c b. C. cost of goods d. net sales

A: The question is based on the concept of Financial Accounting. As per the Bartleby guidelines we are…

Q: In a multiple-step income statement for a retail company, all of the following are included in the…

A: Multi-step income statement:

Q: The difference between total sales in dollars and total variable expenses is called: a. net profit…

A: Contribution Margin Contribution Margin is the amount of revenue remaining  after variable costs to…

Q: Multiple Choice) A multi-step income statement ________. A. separates cost of goods sold from…

A: In multi step income statement the operating results are separately shown.It doesn't consider…

Q: . Which of the following is TRUE about contribution margin? Select one: A. The amount remaining…

A: 1. Which of the following is TRUE about contribution margin? Select one: A. The amount remaining…

Q: total net revenue

A: Statement of comprehensive income is a part of financial statements which shows the net income from…

Q: Compute the following: a) Net sales revenue b) Cost of goods sold

A: Gross profit is the amount earned from selling the company's products or rendering services. It is…

Q: Compute NET Profit margin ratio

A: Net profit margin ratio = Net Income/ Revenue * 100

Q: Compute the gross margin ratio and explain its use to assess profitability.

A: Gross margin ratio is the measure of profitability of the business and it depicts a ratio between…

Q: Gross profit variance analysis can be used to study the effect of:  a. Changes in volume of goods…

A: Gross profit variance analysis is referred as the measurement tool used to measure the capability of…

Q: Define Profit margin on sales.

A: Financial ratios are used to interpret the financial statements. Each financial ratio helps in…