PJ Corp. reported the following income statement results: Sales $987,400 Sales returns &...

Question:

PJ Corp. reported the following income statement results:

Sales$987,400
Sales returns & allowances$7,400
Gross profit$378,280
Operating expense$264,500
Gain on sale of equipment$30,000
Net income$99,960

Calculate the net profit margin.

Net Profit Margin:

The net profit margin calculator is the percentage of profit a company has made from total sales. Calculation of net profit margin in awards dividing the net income of the company from the net sales.

Answer and Explanation: 1

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The calculation for the net profit margin is 10.20%.

The calculation is shown below.

Net sales = Sales - Sales return & allowances

Net sales =...

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Net Profit: Definition & Calculation

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Chapter 1 / Lesson 24
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Explore net profit. Learn the definition of net profit and understand the difference between gross profit and net profit. See net profit formula with examples.


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