Tefft Industries has an average inventory of $170,000, sells on terms of 2/10, net 30, and its cost of sales is $540,000. What i
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Given:
Net sales = $400000
Cost of goods sold = $200,000
Operating expenses = $100,000
Interest expenses = $50,000
To find:
The operating profit margin
Solution:
To calculate the operating profit margin, first we have to find the operating profit.
Subtract your total operating expenses from gross profit to calculate operating profit.
That is,
Divide operating profit by gross revenue to calculate operating profit margin.
Therefore, the Operating profit margin is 25%.
Answer:
Effective annual rate = 6.82 %
Explanation:
given data
loan = 65 % of $2.5 million = $1625000
monthly payment pmt = $10,400
time = 30 year = 30 × 12 = 360
solution
we get here rate first by present value
present value = pmt × ..........1
$1625000 = $10400 ×
15.625 =
solve it we get
r = 0.5517%
and Effective annual rate will be
Effective annual rate =
Effective annual rate =
Effective annual rate = 0.068250
Effective annual rate = 6.82 %