2.3.1 Profit Flashcards
1
Q
Profit calculation
A
total revenue - total costs
2
Q
Gross Profit calculation
A
sales revenue - costs of revenue
3
Q
Operating Profit calculation
A
gross profit - other operating expenses
4
Q
Profit for the Year calculation
A
operating profit - interest and taxation - exceptional
items
5
Q
Gross Profit Margin calculation
A
gross profit / sales revenue x 100
6
Q
Operating Profit Margin calculation
A
operating profit / sales revenue x 100
7
Q
Net Profit Margin calculation
A
net profit / sales revenue x 100
8
Q
Methods of improving Profit/Profitability
A
- sell the same amount at a higher price
- sell more at current price
- sell same amount at same price but cut costs
