The following information was taken from Logsden Manufacturing's trial balances as of December 31, 2018, and December
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Required:
1. Calculate the gross profit margin and operating margin percentage for 2019.
2. Assuming that all of the operating expenses are fixed (or, won't change as sales increase or decrease), what will be the operating margin percentage if sales increase by 25%?
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12/31/2019 12/31/2018 $ 14,000 22,000 144,000 $ 18,000 15,000 127,000 Accounts receivable Accounts payable Cost of goods sold Sales 279,000 239,000 10,000 16,000 2,000 16,000 12,000 Sales returns Retained earnings Dividends Income from operations Net income 47,000 3,000 25,000 19,000 18,000
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1 Gross Profit Margin Percentage Gross ProfitNet Sales 123000267000 46...View the full answer
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