A company selling gourmet homemade soups
2019 2018
$ $
total production 6538000 5082000
gross profit 3006000 2582000
net profit 590000 574000
total capital employed 6011000 5722000
required:
calculate gross profit margin and net profit margin.
I don't know how to calculate revenue.
thanks
ACCA Forums
PMfinancial performance
7y ago#1Assuming there are no opening or closing inventories and all produced units are sold, then the Cost of Sales should be the Total Production Cost.
As,
Gross Profit = Sales - Cost of Sales
So,
Sales = Gross Profit + Cost of Sales
2018: Sales = $3,006,000 + $6,538,000 = $9,544,000
2019: Sales = $2,582,000 + $5,082,000 = $7,644,000
I guess this should help.
thank you
7y ago#3You are welcome :)
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