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    sa7ar32's Avatar
    sa7ar32 Posts: 1, Reputation: 1
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    #1

    Sep 24, 2007, 05:42 PM
    Asssitance in finding (calculate profit margin and net income)
    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's Avatar
    ake_finance Posts: 19, Reputation: 1
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    #2

    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.
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