If pretax profits increase by 20% when the DOL is 3.2, what is the increase in sales? a. 6.25% b. 64% c. 10% d. 8.5%
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- Suppose Micro-Shave growth rate in sales is forecast as 13% rather than 10%. If all ratios stay the same, what is the AFN? Sales growth rate So Ao / So Lo / So Profit margin (M) Payout ratio O $ 170.74 O $240.50 O $ 205.62 O None of these are correct 13% $3,000 million 66.666% 6.667% 3.783% 50.670%2. You have the following information: Sales= JD 300 000 Net profit margin= 20%. Required: Calculate Net Income2. Conceptual Connection: Compute net profit margin for ERS. Round your answer to one decimal place. 6.6 % A If ERS is able to increase its service revenue by $100,000, what should be the effect on future income? If ERS had an incremental increase in revenue of $100,000, based on the net profit margin computed, what is the additional potential profit? 3. Conceptual Connection: Assume that ERS net profit margin was 8.5% for 2018. As an investor, what conclusions might you draw about ERS' future profitability? A declining profit margin implies that ERS is having difficulty maintaining control over its expenses.