2.4.1 Business calculations

Question 1

What is the formula for Gross profit

Answer 1

revenue-cost of sales

Question 2

what is the formula for net profit

Answer 2

gross profit - fixed costs

Question 3

what is the formula for gross profit margin

Answer 3

gross profit/revenue

Question 4

what is the formula for net profit margin

Answer 4

net profit/revenue

Question 5

what is the formula for average rate of return

Answer 5

average annual profit/initial investment