2.4 making financial decisions

gross profit

revenue-cost of sales

net profit

revenue-total costs

gross profit margins

the percentage of our revenue that we keep as gross profit

gross profit/revenue x100

net profit margin

net profit/revenue x 100

average rate of return

what percent of the initial cost of investment we earn as average profit

average annual profit/initial investment x 100

best graph for trends

line graph

best graph for comparison

bar chart

best chart for proportions

pie chart

i.e market share

financial data

analysing calculations to identify strengths and weaknesses

marketing data

from market research-primary and secondary

market share

market size

limitations of data

based around projections-not 100% true

which data is most important