In the DuPont formula, return on assets equals: Multiple Choice Profit margin on sales x Inventory turnover. Profit margin on sales x Asset turnover. Gross margin on sales x Asset turnover. Gross margin on sales x Inventory turnover.

How do you calculate gross profit as a percentage of sales?

The gross margin estimation method estimates the cost of goods sold by multiplying the costs to sales ratio by purchases. O multiplying the sales revenue by the inventory turnover ratio. multiplying the cost of goods available by the gross margin percentage. O multiplying the sales revenue by cost-to-sales ratio.

How should you compute the number that appears as "cost of good sold" in a common-size income statement?

Concept introduction Gross profit ratio: Gross profit ratio calculated by dividng the gross profit by sales.The formula to calculate the gross profit ratio is as follows: Gross profit = Gross profit/sales Gross profit is calculated using the following formula: Gross profit= Sales-Cost of Goods Sold To choose: The correct term for excess of sales over the cost of goods sold.

The difference, (Total Revenue - Total Cost) or [(Unit Price x Quantity Sold) - (Fixed Cost + Variable Cost)], represents, O the break-even point O the profit equation O the sales ratio O the market share O the value equation

What is economic surplus defined as? A) The total revenue earned by a firm B) The difference between total revenue and total costs C) The total amount of money available for investment D) The value of goods produced in excess of demand Correct Answer: B) The difference between total revenue and total costs

Gross profit will result if: O Sales revenues are greater than operating expenses. Operating expenses are greater than cost of goods sold. Sales revenues are greater than cost of goods sold. O Operating expenses are less than net income.

Cost-volume-profit-analysis can be used to determine expected income from predicted sales and cost levels True  False

1. Which of the following shows the degree of operating leverage? The percentage change in the sales volume as the result of the percentage change in cost of the goods sold The percentage change in the net income as the result of the percentage change in the variable costs The percentage change in the sales volume as the result of the percentage change in the sales price The percentage change in the net inome as the result of the percentage change in the sales volume The percentage change in the operating income as the result of the percentage change in the sales volume