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Net profit margin

AAhmed11y ago
Question: A business operates on a gross profit margin of 33 1/3%.Gross profit on sales was $800 and expenses were $680. What is the net profit? Answer: 5%. What is the calculation approache? kindly help me to solve this sir.
John MoffatJohn MoffatTutor11y ago#1
The sales must be 800 x 3 = 2400 (so the gross profit is 1/3 x sales). The net profit is 800 - 680 = 120. So the net profit margin is 120/2400
AAhmed11y ago#2
How can you get the sales revenue =800*3?
John MoffatJohn MoffatTutor11y ago#3
If the gross profit is sales x 1/3, then sales must be gross profit x 3. (33 1/3% = 1/3)
MSMuhammad Shuja1y ago#4
Sales 100% Cost 66.7% profit 33.3% now calculating sales price= (800/33.3)*100=2402.402 net profit= 800-680=120 net profit percentage= (120/2402.402)*100=4.99%=5%
John MoffatJohn MoffatTutor1y ago#5
Which is exactly the same as I wrote in my earlier reply!!!
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