Performance of organisations
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jmh
Registered Posts: 42
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.
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.
0
Comments
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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% = £5,400,000Matthew Dearlove MAAT
Currently on CIMA Management Level. Passed P2, F2 and E2. Preparing for November 19 MCS.0 -
thank you for your help with this.0
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