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The following information is available from the final accounts of Brandon Ltd on 31/12/2014: Calculate the Net Profit Margin - Leaving Cert Business - Question 6 - 2015
Question 6
The following information is available from the final accounts of Brandon Ltd on 31/12/2014: Calculate the Net Profit Margin. (Show your workings.) Net Profit €110,... show full transcript
Worked Solution & Example Answer:The following information is available from the final accounts of Brandon Ltd on 31/12/2014: Calculate the Net Profit Margin - Leaving Cert Business - Question 6 - 2015
Step 1
Calculate the Net Profit Margin
Answer
To calculate the Net Profit Margin, we use the formula:
ext{Net Profit Margin} = rac{ ext{Net Profit}}{ ext{Sales}} imes 100Substituting the provided values:
ext{Net Profit Margin} = rac{110,000}{880,000} imes 100Calculating this yields:
ext{Net Profit Margin} = rac{110,000}{880,000} imes 100 = 12.5\%Therefore, the Net Profit Margin for Brandon Ltd is 12.5%.