Performance of organisations

jmh

Hello,
I am really struggling with the below, can someone please explain this to me?

Net Assets - 3,600,000
Return on Net Assets - 12%
Profit Margin - 8%

Calculate: Operating Profit: £
Sales Revenue: £

Thank you.

Cheesypeesy

Operating profit
Return on Net Assets = Operating profit/Net Assets

Rearrange to get Operating profit = Net Assets * Return on Net Assets.

Operating profit = £3,600,000 * 12% = £432,000.

Sales revenue
Operating profit margin = Operating profit/Sales Revenue.

Rearrange to get Sales Revenue = Operating profit/Operating profit margin.

Sales revenue = £432,000/8% = £5,400,000

jmh

thank you for your help with this.