Business Equations pt.3

Question 1

How to work out Gross Profit?

Answer 1

Revenue - cost of sales

Question 2

How to work out Operating Profit?

Answer 2

Gross profit - operating expenses

Question 3

How to work out Profit for the Year?

Answer 3

Operating profit + profit from other activities - net finance costs - tax

Question 4

How to work out gross profit margin?

Answer 4

( Gross profit / Revenue ) x 100