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View Full Version : Asssitance in finding (calculate profit margin and net income)


sa7ar32
Sep 24, 2007, 05:42 PM
OK, have an assignment and this might be easy, but we still haven't been taught on everything yet. Here is my question- company net loss (15000 Pounds) on sales of (
160,000 Pounds), company's margin profit is____ %

In $ sales were 400,000, net income in $ was $______

Please help me.. thank you

ake_finance
Oct 1, 2007, 07:45 PM
Net profit margin = net profit/total sales x 100

1.)company's margin profit is -15,000/160,000=-9.3750%

2.)if the company's sales were 400,000, the net income would be 400,000 X -9.3750%=
-$37,500

The income is negative because I use the net profit margin from the first question.
You can change the number by using the same formula that I do.