theme 2.4 making financial decisions Flashcards
1
Q
what is the gross profit calculation
A
Gross profit = Sales revenue – costs of sales
2
Q
calculation for net profit
A
NET PROFIT = GROSS PROFIT –
OTHER OPERATING COSTS
3
Q
calculation for net profit margin
A
=(net profit/sales revenue)x100
4
Q
what is gross profit
A
gross profit is the difference between the money received from selling goods and services and the cost of making or providing them. It ignores any fixed costs
5
Q
how do we calculate gross profit margin
A
=(gross profit/sales revenue)x100
6
Q
how do we calculate average rate of return
A
(average annual profit(total profit/years)/cost of investment)x100
