2.3.1 Profit Flashcards
1
Q
What is profit
A
The money a business has left after all expenses have been paid for
2
Q
What is gross profit
A
Sales revenue-direct/variable costs
3
Q
Gross profit margin formula
A
GP=(gross profit/sales revenue)x 100
4
Q
Operating margin formula
A
OP=(operating profit/sales revenue) x100
5
Q
What is net profit
A
Profit after every expense has been taken into account
6
Q
Net profit margin formula
A
NP=(net profit/sales revenue) x100
7
Q
Net profit formula
A
Operating profit-interest
