Studied by 2 people
gross profit
used to calculate which products make more profit for a business
net profit
the actual profit a business makes after taking account of all costs
gross profit margin
comparing the total revenue earned by the business with the cost of the sales it markets
net profit margin
comparing the gross profit the business earns with its expenses
GP equation
GP=SR-VC
NP equation
NP=SR-TC or NP=GP-FC
GPM equation
GPM=(GP/SR)X100
NPM equation
NPM=(NP/SR)X100
what do npm and gpm tell the business
it tells the business how profitable it is and if it is performing well
