profit Flashcards
(8 cards)
1
Q
what does profit mean
A
the money left over after all expenses are paid
2
Q
how do you work out the gross profit
A
gross profit = revenue - cost of sales
3
Q
how do you work out operating profit
A
operating profit = gross profit - operating expenses
4
Q
how do you work out the net profit
A
net profit = operating profit - interest
5
Q
how do you work out the gross profit margin
A
gross profit margin = gross/revenue x 100
6
Q
how do you work out the operating profit margin
A
operating profit margin = operating profit/revenue x 100
7
Q
how do you work out the net profit margin
A
net profit margin = net profit before tax/revenue x 100
8
Q
how can you improve profitability
A
raising prices, buying cheaper materials, using existing materials more efficiently
