A firm's profit is equal to the total revenue minus the total cost. Profit, however, can be expressed in average cost terms as well.Answer and Explanation: Profit = (price)*(quantity) - (average total cost)*(qu
In the HealthPill example in Figure 2, the highest profit will occur at the quantity where total revenue is the farthest above total cost. This looks to be somewhere in the middle of the graph, but where exactly? It is easier to see the profit maximizing level of output by using the ...
In accounting and finance, a profit margin is a measure of a company’s earnings (or profits) relative to itsrevenue. The three main profit margin metrics aregross profit margin(total revenue minus cost of goods sold (COGS) ),operating profit margin(revenue minus COGS and operating expenses),...
Answer to: Profit equals: a. (Price x Quantity) - (Price x Cost) b. Total revenue - Average cost c. (Price - ATC) x Quantity d. Average Revenue -...
Net Profit Margin = Net Profit/ Revenue Net profit is calculated by deducting both taxes and interest, of these fromoperating incomeor operating profit. In the example of Company X, the answer is $20,000 minus $10,000, which equals $10,000. Divide the net profit by sales for the net ...
2. Cost of Goods Sold (COGS) Cost of goods sold, or COGS, are the direct expenses incurred to produce products or deliver services to customers, including direct labor and materials. 3. Gross Profit Also known as gross income,gross profitis net revenue minus the cost of goods sold. ...
Net profit factors in more deductions from revenue than either gross or operating profit. To sum up, it equals total revenue minus the cost of goods sold, operating expenses, interest, taxes, preferred stock, and debt repayments. Say your total revenue is $10,000, but you paid $8,000 fo...
Net Profit Margin = Net Profit/ Revenue Net profit is calculated by deducting both taxes and interest, of these from operating profit. In the example of Company X, the answer is $20,000 minus $10,000, which equals $10,000. Divide the net profit by sales for the net profit margin, wh...
Net Profit Margin: This formula calculates all expenses from revenue, including COGS, operating expenses, taxes, interest, depreciation, and amortization in relation to the total revenue. Remember that net profit equals gross revenue minus total expenses. The formula is as follows: Net Profit Margin...
The result of subtracting cost of goods sold from sales. Synonymous with gross margin. cash flow from operating activities, or cash flow from profit This equals the cash inflow from sales during the period minus the cash outflow for expenses during the period. Keep in mind that to measure ...