In 2012, Modder Corporation reported net sales of $250,000, cost of goods sold of $137,500, operating expenses
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In 2012, Modder Corporation reported net sales of $250,000, cost of goods sold of $137,500, operating expenses of $50,000, and income tax expense of $20,000. In 2011, it reported net sales of $200,000, cost of goods sold of $114,000, operating expenses of $40,000, other revenues and gains of $10,000, and income tax expense of $15,000.
(a) Calculate the gross profit margin and profit margin for each year.
(b) Comment on Modder's changing profitability.
CorporationA Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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Related Book For
Financial Accounting Tools for Business Decision Making
ISBN: 978-1118024492
5th Canadian edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso, Barbara Trenholm, Wayne Irvine
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