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Computation of the net profit margin

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Reference no: EM133064193

The manager of Mark Cricket and Company is concerned that the company profit margin has been declining during the last 20 months. The manager believes that Expenses are outpacing revenues.

Use the data in the attached Excel file (PROFITABILITY) to support or refute the manager's concern.

  1. In order to resolve the issue raised by the manager, you need to plot a time series chart of the Net Profit Margin of the company over the last 20 months.
  2. Need help with creating a table showing the computation of the Net profit margin of the Mark Cricket Company.

Month

Sales

Profit

Net Profit Margin

Jan-05

$37,000.00

$4,120.00

11.14%

Feb-05

$38,900.00

$4,200.00

10.80%

Mar-05

$41,200.00

$3,960.00

9.61%

Apr-05

$39,600.00

$4,010.00

10.13%

YEAR

PPI

CPI

1950

3.546

4.151

1951

3.247

3.846

1952

3.268

3.765

1953

3.300

3.735

1954

3.289

3.717

1955

3.279

3.732

1956

3.195

3.678

1957

3.077

3.549

1958

3.012

3.457

1959

3.021

3.427

1960

2.994

3.373

1961

2.994

3.340

1962

2.985

3.304

1963

2.994

3.265

1964

2.985

3.220

1965

2.933

3.166

1966

2.841

3.080

1967

2.809

2.993

1968

2.732

2.873

1969

2.632

2.726

1970

2.545

2.574

1971

2.469

2.466

1972

2.392

2.391

1973

2.193

2.251

1974

1.901

2.029

1975

1.718

1.859

1976

1.645

1.757

1977

1.546

1.649

1978

1.433

1.532

1979

1.289

1.380

1980

1.136

1.215

1981

1.041

1.098

1982

1.000

1.035

1983

0.984

1.003

1984

0.964

0.961

1985

0.955

0.928

1986

0.969

0.913

1987

0.949

0.880

1988

0.926

0.846

1989

0.880

0.807

1990

0.839

0.766

1991

0.822

0.734

1992

0.812

0.713

1993

0.802

0.692

1994

0.797

0.675

1995

0.782

0.656

1996

0.762

0.638

1997

0.759

0.623

1998

0.765

0.614

1999

0.752

0.600

2000

0.725

0.581

2001

0.711

0.565

2002

0.720

0.556

2003

0.698

0.544

2004

0.673

0.530

2005

0.642

0.512

Reference no: EM133064193

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