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kimberley28
kimberley28 Registered Posts: 8 New contributor 🐸
in Chat and off-topic discussion
Please could someone help me??

I am having trouble an activity in Unit 6. It is activity 3 in the chapter named Performance Assesment. I am having trouble calculating the percentage for net profit/sales etc.

Could some please give me some advice?

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  • PGM
    PGM Registered Posts: 1,954 Beyond epic contributor 🧙‍♂️
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    I haven't seen the question, but have you taken returns off the sales figure? I
  • kimberley28
    kimberley28 Registered Posts: 8 New contributor 🐸
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    No there is no returns. The question is about ratios
  • PGM
    PGM Registered Posts: 1,954 Beyond epic contributor 🧙‍♂️
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    kimberley28 wrote: »
    No there is no returns. The question is about ratios

    Then its the net profit figure over sales, and multiply by 100 to get the %
  • kimberley28
    kimberley28 Registered Posts: 8 New contributor 🐸
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    Hi there, i can't find what the net profit is, the question i am faced with is: -

    Task 1 - complete the following table of ratios for 2005, the ratios for 2004 are given.

    Table of ratios Ratio 2004 2005
    Hardware - commercial Net profit/sales 17.5% ?
    Development costs/Sales 34.7% ?
    Sales per employee 22,107 ?

    Results for the 2004/2005 financial year are as follows
    Year Hardware Hardware Software &
    Commercial Goverment consultancy
    2005 Sales 15,957,000 24,768,000 11,368,000
    2005 Development costs 6,376,000 7,832,000 2,134,000
    2005 Other Costs 7,215,000 8,150,000 3,716,000
    2005 No Employee's 831 607 423
    2004 Sales 17,643,000 25,974,000 9,276,000

    Note It is company policy to write off development costs in the year of expenditure because of technology.

    I can figure out thedepartment costs over sales but not the NET profit over sales, what i need is a percentage, please help!
  • marknotgeorge
    marknotgeorge Registered Posts: 158 Dedicated contributor 🦉
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    You need to subtract the development and other costs from sales to arrive at the net profit. Then divide the net profit by sales and multiply by 10 to get the ratio.

    I've seen this very question, but for Unit 7.
  • kimberley28
    kimberley28 Registered Posts: 8 New contributor 🐸
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    Thanks for your help much appreciated.:001_smile:

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