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net profit margin

HHamza10y ago
is there a reason why net profit margin would increase despite the fact that along with Revenue, expenses and cost of good sold has also increased? Any help would be appreciated. Thank you
MikeLittleMikeLittleTutor10y ago#1
Because revenue has maybe increased at a faster rate? Put some figures down on a sheet of paper. Now, increase the revenue figure by 50%, cost of sales by 20% and expenses by 15% What's happened to your net profit percentage?
HHamza10y ago#2
Thanks Mike, I am calculating ratios of a company. Should I use the figures before 'Exceptional items' or the whole total?
MikeLittleMikeLittleTutor10y ago#3
No reply - it's wrong of you to use me for advice in your professional life. Please don't do this again
HHamza10y ago#4
?????????? I have never worked as accountant. I am doing this as part of an assignment for my studies. but if you don't want to answer my question, then fine.
MikeLittleMikeLittleTutor10y ago#5
Again, I'm not here to do your homework! The opentuition material (whether it's F3 or F7) should be enough for you to answer your homework for yourself
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