Profit Margin
2BlessU
| 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 | 9,000 |
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 posts know what you changes you would recommend to improve the net margin of the company.
13 years ago
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