...force a 20% commission of net sales? so the expect the net sales to increase by 15%. as a result they estimate the gross profit will increase by $39,105 and the operating expenses will increase by $75595. compute the expected new net income!!also compute the new profit margin ratio and the gross profit rate.
Can u plz help me do this. I tried it but culdnt find an answer
here r the formulas if u need
sales-(sales returns and allowances)= net sales
net sale - cost of goods sold= gross profit
gross profit- operating expenses = income from operations
gross profit rate= gross profit/net sales
profit margin ratio = net income/net sales
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