Explain gross margin or gross profit
Explain gross margin or gross profit
Homework Answers
Answer
- Gross Margin or Gross Profits refers to that amount that the company earns on its Sales.
- It’s the amount that is left without deducting any operating expenses or any kind of expenses, except for Cost of Goods Sold.
- If a company’s gross margin % is 10%, this means that for every $1 of Sales revenue, the company is earning $0.10 profit.
- Gross Margin or Profit can be calculated in various ways. The
most common of which is:
--Sales revenue – Cost of Goods Sold = Gross Profit.
Gross Profit margin = Gross Profit / Total Revenue, Gross Profit = Sales - Cost of...
Gross Profit margin = Gross Profit / Total Revenue, Gross Profit = Sales - Cost of Goods Sold. Operating Profit = Operating Revenue - Cost of Goods Sold (COGS) - Operating Expenses - Depreciation - Amortization. However, for a hospital, there is no "Cost of Goods Sold", so how to calculate Gross Profit margin and Operating Profit ?
For a hospital, how to calculate Gross Profit Margin , Operating Profit Margin , Net Profit Margin , &nb...
For a hospital, how to calculate Gross Profit Margin , Operating Profit Margin , Net Profit Margin , Profit after Taxes ? Note: There is no "Cost of good sold"and “Sales”。 There are only “Operating Revenues”, “Operating Expenses”, “Operating Income (Loss)”, “Nonoperating Revenues (Expenses)” , and “Net Position” given.
TB MC Qu. 04-96 A company's gross profit... A company's gross profit (or gross margin) was...
TB MC Qu. 04-96 A company's gross profit... A company's gross profit (or gross margin) was $126,910 and its net sales were $494,200. Its gross margin ratio is: Multiple Choice 1:13 74.3% 8.9% $126.910 25.7% $367.290 < Prev 4 of 12 Next >
Calculate gross profit margin (gross profit/revenues) and operating profit margin (operating profit/revenues) for Tesco PLC (refer...
Calculate gross profit margin (gross profit/revenues) and
operating profit margin (operating profit/revenues) for Tesco PLC
(refer to Exhibit 2.13).
Multiple Choice
5.4% and 5.1%
5.4% and 2.3%
Cannot be calculated with the information provided
4.2% and 8.3%
EXHIBIT 2.13 TESCO PLC Excerpt from Group Income Statement 52 weeks ended 25 February 2017 Before exceptional items £m Exceptional items (Note 4) £m Total £m Continuing operations Note Revenue Cost of sales Gross profit (loss)...... Administrative expenses Profits/(losses) arising on property-related items....
1. Calculate gross profit margin (gross profit/revenues) and operating profit margin (operating profit/revenues) for Tesco PLC...
1. Calculate gross profit margin (gross profit/revenues) and
operating profit margin (operating profit/revenues) for Tesco PLC
(refer to Exhibit 2.13).
a. 5.4% and 2.3%
b. 5.4% and 5.1%
c. Cannot be calculated with the information provided
d. 4.2% and 8.3%
EXHIBIT 2.13 TESCO PLC Excerpt from Group Income Statement 52 weeks ended 25 February 2017 Before exceptional items £m Exceptional items (Note 4) £m Total £m Continuing operations Note Revenue Cost of sales Gross profit (loss)...... Administrative expenses Profits/(losses) arising...
Calculate Net sales, Gross profits from sales and gross profit margin and profit and loss and...
Calculate Net sales, Gross profits from sales and gross profit margin and profit and loss and Terms are: Sales Sales Discounts (5 %) $16,000 S $105,000 560 $418,000 Net sales Cost of goods sold Gross profit from sales 4,00 31,00 -320.00 215,00 -8.000-64.000 Gross profit margin ratio Gross profit/ Sales) x 100 Operating expenses ?9.000 . 31.000 -22.00? -261,000 106.000 rofit (loss) Quick Study 5-2
What is the formula to calculate the profit margin? Gross Profit ÷ Sale Net Income ÷...
What is the formula to calculate the profit margin? Gross Profit ÷ Sale Net Income ÷ Sales Gross Profit ÷ Net Income Incorrect. Net Income ÷ Gross Profit None of the options listed (Net Income / Revenue) or (Net Profit / Sales)
1.) Explain how a company could have a decreasing gross profit margin but an increasing operating...
1.) Explain how a company could have a decreasing gross profit margin but an increasing operating profit margin. 2.) What is an example of an industry that would need to spend a minimum amount on advertising to be competitive? On research and development? 3.) Alpha Company purchased 30% of the voting common stock of Beta Company on January 1 and paid $500,000 for the investment. Beta Company reported $100,000 of earnings for the year and paid $40,000 in cash dividends....
Compute net sales, gross profit, and the gross margin ratio for each of the four separate...
Compute net sales, gross profit, and the gross margin ratio for each of the four separate companies. (Round your gross margin ratio to 1 decimal place; i.e.; 0.2367 should be entered as 23.7%.). Carrier Lennox Trane York Net sales Gross profit Gross margin ratio Carrier Lennox Trane York Sales $ 152,000 $ 590,000 $ 40,000 $ 259,000 Sales discounts 2,000 13,000 600 4,000 Sales returns and allowances 16,000 6,000 4,100 500 Cost of goods sold 90,852 369,437 26,122 149,646
Calculate gross profit margin (gross profit/revenues) and operating profit margin (operating profit/revenues) for Callaway Golf Company...
Calculate gross profit margin (gross profit/revenues) and
operating profit margin (operating profit/revenues) for Callaway
Golf Company (refer to Exhibit 2.9).
Multiple Choice
44.2% and 5.1%
50.2% and 5.1%
Cannot be calculated with the information provided
44.2% and 8.3%
EXHIBIT 2.9 CALLAWAY GOLF COMPANY Consolidated Statements of Operations (In thousands, except per share data) Year Ended December 31, 2016 2015 2014 $ 871,192 486,181 385,011 235,556 71,969 33,318 340,843 44,168 621 (2,368) 17,662 (1,690) 58,393 (132,561) 190,954 1,054 $ 189,900 $843,794...
TB MC Qu. 04-96 A company's gross profit... A company's gross profit (or gross margin) was $126,910 and its net sales were $494,200. Its gross margin ratio is: Multiple Choice 1:13 74.3% 8.9% $126.910 25.7% $367.290 < Prev 4 of 12 Next >
Calculate gross profit margin (gross profit/revenues) and
operating profit margin (operating profit/revenues) for Tesco PLC
(refer to Exhibit 2.13).
Multiple Choice
5.4% and 5.1%
5.4% and 2.3%
Cannot be calculated with the information provided
4.2% and 8.3%
EXHIBIT 2.13 TESCO PLC Excerpt from Group Income Statement 52 weeks ended 25 February 2017 Before exceptional items £m Exceptional items (Note 4) £m Total £m Continuing operations Note Revenue Cost of sales Gross profit (loss)...... Administrative expenses Profits/(losses) arising on property-related items....
1. Calculate gross profit margin (gross profit/revenues) and
operating profit margin (operating profit/revenues) for Tesco PLC
(refer to Exhibit 2.13).
a. 5.4% and 2.3%
b. 5.4% and 5.1%
c. Cannot be calculated with the information provided
d. 4.2% and 8.3%
EXHIBIT 2.13 TESCO PLC Excerpt from Group Income Statement 52 weeks ended 25 February 2017 Before exceptional items £m Exceptional items (Note 4) £m Total £m Continuing operations Note Revenue Cost of sales Gross profit (loss)...... Administrative expenses Profits/(losses) arising...
Calculate Net sales, Gross profits from sales and gross profit margin and profit and loss and Terms are: Sales Sales Discounts (5 %) $16,000 S $105,000 560 $418,000 Net sales Cost of goods sold Gross profit from sales 4,00 31,00 -320.00 215,00 -8.000-64.000 Gross profit margin ratio Gross profit/ Sales) x 100 Operating expenses ?9.000 . 31.000 -22.00? -261,000 106.000 rofit (loss) Quick Study 5-2
Calculate gross profit margin (gross profit/revenues) and
operating profit margin (operating profit/revenues) for Callaway
Golf Company (refer to Exhibit 2.9).
Multiple Choice
44.2% and 5.1%
50.2% and 5.1%
Cannot be calculated with the information provided
44.2% and 8.3%
EXHIBIT 2.9 CALLAWAY GOLF COMPANY Consolidated Statements of Operations (In thousands, except per share data) Year Ended December 31, 2016 2015 2014 $ 871,192 486,181 385,011 235,556 71,969 33,318 340,843 44,168 621 (2,368) 17,662 (1,690) 58,393 (132,561) 190,954 1,054 $ 189,900 $843,794...
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