Videos: Definitions, Ratios and Proportions
- To run a lemonade stand, Charlie and Sam spent $20 building a booth, and $100 on lemons and sugar. If they brought in $300 in Sales, find their Costs, Net Profit and Gross Profit.
- Detailed information about Minute Maid Lemonade company is supplied below:
Income Statement
Sales $20,000,000
– COGS 12,000,000
= Gross Profit 8,000,000
– Operating expenses 5,000,000
= Net Profit 3,000,000
Create a common size income statement (express each line as a percent of sales.)
Find the Percent Net Margin for both Charlie and Sam’s lemonade stand, and for Minute Maid. Which company had higher Profit Margins?
- Sarah likes to keep the investments in her RRSP in a ratio of 1:3:2 in Cash, Bonds, and Stocks. Last year she invested $12,000 in total.
% Initial %change Interest Today New Total Difference CASH +3% BONDS +8% STOCKS -2% TOTAL $12,000 – (a) How did she invest her initial $12,000?
(b) Over the year, her cash investments rose by 3%, her Bonds by 8%, and her stocks lowered by 2%. What was her profit or loss over the year?
(c) This year, Sarah has another $2540 to invest. How should she invest her money so that the ratio of total investments returns to 1:3:2?