profit

Question 1

what is profit

Answer 1

the amount of revenue left once the costs have been deducted

Question 2

gross profit

Answer 2

the profit a firm makes after the cost of making products is taken into account

Question 3

net profit

Answer 3

the profit a firm makes when all expenses are taken into account. (operating expenses e.g salaries, rent, the interest paid on loans and cost of sales)

Question 4

gross profit equation

Answer 4

revenue- cost of sales

Question 5

net profit equation

Answer 5

gross profit-(other operating expenses+ interest)

Question 6

gross profit margin equation

Answer 6

gross profit/revenue x100

Question 7

net profit margin equation

Answer 7

net profit/revenue x100

Question 8

what is net profit margin

Answer 8

fraction of every pound spent by customers that the company gets to keep after all costs have been paid

Question 9

what is gross profit margin

Answer 9

fraction of every pound spent by customers that doesn’t go directly towards making a product