ACC 205 Week 5 DQ 2 Profit Margin

DQ 2

Profit Margin.

Year Ending

December 2012

Year Ending December

2011

Year Ending December

2010

Revenues 40,000 35,000 33,000

Operating Expenses

Salaries 15,000 10,000 9,

Maintenance and Repairs 6,000 9,000 10,000

Rental Expense 2,500 2,500 2,500

Depreciation 2,000 2,000 2,000

Fuel 4,000 3,500 2,500

Total Operating Expenses 29,500 27,000 26,000

Operating Income 10,500 8,000 7,000

Sales and Administrative

Expenses

6,000 4,000 3,000

Interest Expense 2,500 2,000 1,000

Net Income 2,000 2,000 3,000

Above is a comparative income statement for Cecil, Inc. for the years 2010, 2011, and 2012. Calculate the profit margin for each of these years. Comment on the profit margin trend.

Guided Response:

Let at least two of your peers know what you changes you would recommend to improve the net margin of the company.