calculate the net profit margin for each of these years – writinghub.net

Year Ending December 2012

Year Ending December 2011

Year Ending December 2010

Revenues 40,000

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 net-profit margin for each of these years. Comment on the profit margin trend.

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