Profit Margin |
Year Ending December 2012 |
Year Ending December 2011 |
Year Ending December 2010 |
||||
Revenues |
40,000 (.05%) |
35,000 |
3 |
3,000 |
||
Operating Expenses |
||||||
Salaries |
15,000 |
10,000 |
9,000 |
|||
Maintenance and Repairs |
6,000 |
|||||
Rental Expense |
2,500 |
|||||
Depreciation |
2,000 |
|||||
Fuel |
4,000 |
3,500 |
||||
Total Operating Expenses |
29,500 |
2 |
7,000 |
26,000 |
||
Operating Income |
10,500 |
8,000 |
||||
Sales and Administrative Expenses |
||||||
Interest Expense |
1,000 |
|||||
Net Income |
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 |
3 3,000 |
|||
Operating Expenses |
||||||
Salaries |
15,000 |
10,000 |
9,000 |
|||
Maintenance and Repairs |
6,000 |
|||||
Rental Expense |
2,500 |
|||||
Depreciation |
2,000 |
|||||
Fuel |
4,000 |
3,500 |
||||
Total Operating Expenses |
29,500 |
2 7,000 |
26,000 |
|||
Operating Income |
10,500 |
8,000 |
7,000 | |||
Sales and Administrative Expenses |
3,000 | |||||
Interest Expense |
1,000 |
|||||
Net Income |
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.