Answer:
1. Zahira will incur net loss of 10,000.00
2. No Gross Profit Rate because there is no gross profit. Instead, she got Gross Loss.
3. No Operating Profit Margin because there is no Operating Profit, and no operating expenses given.
4. No Net Profit Margin Rate because there is no Net Profit, but a Net Loss.
5. No ROI because, as you may have guessed already, there is no profit.
Explanation:
Sales: 108K (6 units @ 18K/unit) + 72K (6 units @ 12K/unit) = 180K
Purchases: 200K - 10K (5% discount) = 190K
Gross Loss = Sales - Purchases = 180K - 190K = -10K
Hope it helps.
#CarryOnLearning
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Answers & Comments
Answer:
1. Zahira will incur net loss of 10,000.00
2. No Gross Profit Rate because there is no gross profit. Instead, she got Gross Loss.
3. No Operating Profit Margin because there is no Operating Profit, and no operating expenses given.
4. No Net Profit Margin Rate because there is no Net Profit, but a Net Loss.
5. No ROI because, as you may have guessed already, there is no profit.
Explanation:
Sales: 108K (6 units @ 18K/unit) + 72K (6 units @ 12K/unit) = 180K
Purchases: 200K - 10K (5% discount) = 190K
Gross Loss = Sales - Purchases = 180K - 190K = -10K
Hope it helps.
#CarryOnLearning