Answered: Use basic principles of Algebra and…

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

Chapter12: Financial Statements, Closing Entries, And Reversing Entries

Section: Chapter Questions

Problem 3E: Identify each of the following items relating to sections of an income statement as Revenue from...

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b) Calculate mark-up (in percentage to 2 decimal places)
c) Calculate the margin as a % to 1 decimal place

d) What is the operating profit margin percentage if the selling expense is
reduced by 25%? Show this to nearest whole number %
e) Define the following and provide respective examples.

f) If a company has a mark-up of 27% and sales revenue of £130,597, then
what is the cost of sales in whole £’s?

g) If a company has a net margin of 50%, gross margin of 66.67% and costs of sale of £1,150,000, then what is the sales revenue and overhead?

Use basic principles of Algebra and apply mathematical skills to finance decisions.
a) What are the definitions and business uses of calculating mark-up and
margin?
Sales Revenue
Purchases
Gross Profit
Selling Expenses
Admin Cost
Operating Profit
GBP
476,800
(412,800)
64,000
(20,000)
(7,200)
36,800

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