GP, NP, GPM, NPM

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Business

GCSE Business Studies

OCR

Operations, Finance and Influences on Business

gross profit

used to calculate which products make more profit for a business

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net profit

the actual profit a business makes after taking account of all costs

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gross profit margin

comparing the total revenue earned by the business with the cost of the sales it markets

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net profit margin

comparing the gross profit the business earns with its expenses

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GP equation

GP=SR-VC

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NP equation

NP=SR-TC or NP=GP-FC

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GPM equation

GPM=(GP/SR)X100

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NPM equation

NPM=(NP/SR)X100

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what do npm and gpm tell the business

it tells the business how profitable it is and if it is performing well

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