Topic 2.4 Flashcards by Akash Patel | Brainscape

Q

How to work out average rate of return

A

Average annual profit/ cost of investment (x 100)

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Q

How to work out gross profit

A

Revenue - cost of sales

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Q

How to work out net profit

A

Gross profit - (operating expenses + interest)

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Q

How to work out gross profit margin

A

Gross profit / sales revenue x 100

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Q

How to work out net profit margin

A

Net profit / sales revenue x 100

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