Profit Margin |
Year Ending December 2012 |
Year Ending December 2011 |
Year Ending December 2010 |
|
Revenues |
40,000 (.05%) |
35,000 |
33,000 |
Operating Expenses |
|||
Salaries |
15,000 |
10,000 |
9,000 |
Maintenance and Repairs |
6,000 |
9,000 |
10,000 |
Rental Expense |
2,500 |
2,500 |
2,500 |
Depreciation |
2,000 |
2,000 |
2,000 |
Fuel |
4,000 |
3,500 |
2,500 |
Total Operating Expenses |
29,500 |
27,000 |
26,000 |
Operating Income |
10,500 |
8,000 |
7,000 |
Sales and Administrative Expenses |
6,000 |
4,000 |
3,000 |
Interest Expense |
2,500 |
2,000 |
1,000 |
Net Income |
2,000 |
2,000 |
3,000 |
Above is a comparative income statement for Cecil, Inc. for the years 2010, 2011, and 2012. Calculate the profit margin for each of these years. Comment on the profit margin trend.
Profit Margin?? ?Year Ending December 2012?Year Ending December 2011?Year Ending December 2010??Revenues?40,000 (.05%)?35,000?33,000??Operating Expenses?????Salaries?15,000?10,000?9,000??Maintenance and Repairs?6,000?9,000?10,000??Rental Expense?2,500?2,500?2,500??Depreciation?2,000?2,000?2,000??Fuel?4,000?3,500?2,500??Total Operating Expenses?29,500?27,000?26,000??Operating Income?10,500?8,000?7,000??Sales and Administrative Expenses?6,000?4,000?3,000??Interest Expense?2,500?2,000?1,000??Net Income?2,000?2,000?3,000????Above is a comparative income statement for Cecil, Inc. for the years 2010, 2011, and 2012. Calculate the profit margin for each of these years. Comment on the profit margin trend.
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