ECONOMICS
SUPPLY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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total revenue plus total cost
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marginal revenue minus marginal cost
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total revenue minus total cost
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marginal revenue plus marginal cost
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Detailed explanation-1: -Profit is simply total revenue minus total expenses. It tells you how much your business earned after costs.
Detailed explanation-2: -The gross profit margin formula, Gross Profit Margin = (Revenue – Cost of Goods Sold) / Revenue x 100, shows the percentage ratio of revenue you keep for each sale after all costs are deducted. It is used to indicate how successful a company is in generating revenue, whilst keeping the expenses low.
Detailed explanation-3: -Revenue – Expenses = Profit A positive number means you’re turning a profit. If it’s a negative number, your business is losing money. Zero means you’re breaking even. For example, a business with revenue of $75, 000 per year and $15, 000 in expenses has a net annual profit of $60, 000.
Detailed explanation-4: -Determine your business’s net income (Revenue – Expenses) Divide your net income by your revenue (also called net sales) Multiply your total by 100 to get your profit margin percentage.