If a market survey indicates that your firm's sales would be $620,000, what net profit would you expect to earn?

What will be an ideal response?

First, find net profit margin percentage
Sales 100 percent
- CGS 60.3 percent
Gross Profit Margin 39.7 percent
- Operating Expenses 36.4 percent
Net Profit Margin 3.3 percent

Therefore, if net sales equals $696,970, then net profit is:
$696,970 × 3.3% = $23,000

Net profit can also be calculated by using dollar values:
Sales $696,970 100%
- CGS 420,273 60.3%
Gross Profit 276,697 39.7%
- Operating Expenses 253,697 36.4%
Net Profit $23,000 3.3%