pigottpatrick97 pigottpatrick97
  • 02-05-2020
  • Business
contestada

How is the profit as a percentage of sales ratio calculated?​

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Natiqali31 Natiqali31
  • 02-05-2020

Answer: In business, profit to sales ratio is the ratio of net profit divided by net sales

Net profit divided by net sales

Explanation:

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onyinyechianyanwu13
onyinyechianyanwu13 onyinyechianyanwu13
  • 02-05-2020
Divide the profit by the sales to find the portion of each dollar you keep as profit. In this example, divide $90,000 by $575,000 to get 0.1565. Multiply the result by 100 to calculate the return-on-sales ratio as a percentage. In this example, multiply 0.1565 by 100 to get 15.65 percent.
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