profit=Revenue-Costs
If a business wants to increase the profit that it makes it either has to:
1) Increase the Sales Revenue (SR) so which means increasing the prices or the quantity of the goods sold e.g. through promotion or advertising
2) Reduce the c
3 of 9
what is a loss?
A loss is the opposite of a profit.
Profit =Revenue-Costs
Using the profit formula it means that a business has higher costs than the revenue it has made
4 of 9
Gross Profit Formula (Gp)
Gp=sr-cos
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Net Profit Formula (NP)
NP = SR – (FC +VC)
6 of 9
Gross Profit Margin GPM (%) formula
GP margin = Gross Profit
______________ x100
Sales Revenue
7 of 9
Net Profit Margin % (NPM) formula
NP margin = Net Profit
________________ x100
Sales Revenue
profit=Revenue-Costs
If a business wants to increase the profit that it makes it either has to:
1) Increase the Sales Revenue (SR) so which means increasing the prices or the quantity of the goods sold e.g. through promotion or advertising
2) Reduce the c
Back
Card 4
Front
A loss is the opposite of a profit.
Profit =Revenue-Costs
Using the profit formula it means that a business has higher costs than the revenue it has made
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