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A company selling gourmet homemade soups
2019 2018
$ $
total production 6538000 5082000
gross profit 3006000 2582000
net profit 590000 574000
total capital employed 6011000 5722000required:
calculate gross profit margin and net profit margin.I don’t know how to calculate revenue.
thanks
Assuming 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 Sales2018: Sales = $3,006,000 + $6,538,000 = $9,544,000
2019: Sales = $2,582,000 + $5,082,000 = $7,644,000I guess this should help.
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