| 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.
For a written transcript, please click here.Guided Response:
Let at least two of your peers know what you changes you would recommend to improve the net margin of the company.