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ACC 205 Week 5 DQ 2

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Product Description

DQ 2
Profit Margin.
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,
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 profit margin for each of these years. Comment on the profit margin trend.
Guided Response:
Let at least two of your peers know what you changes you would recommend to improve the net margin of the company.

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