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How do you figure out the profit?

How do you figure out the profit?


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185 helpful answers
  1. The Process

  2. Step 1
    Determine the revenue. This is the total amount of money made by a company by their goods and services. Simply, this would be the number of goods multiplied by the price of the good. For example, ACME company sells only rocket skates and they sold 18,000 rocket skates to a certain coyote (their best customer) for $50 each. To determine the revenue, you would multiply 18,000 by $50, which is $900,000.

  3. Step 2
    Determine the net income This is the revenue minus the cost of producing the good. For example, if it costs $50,000 for the ACME company to produce 18,000 rocket skates (this covers the cost of materials and paying for labor and other associated costs), then to determine the net income, subtract $50,000 from the revenue of $900,000, ($900,000 - $50,000 = $850,00)

  4. Step 3
    Divide the net income by the revenue. In the example this would be $850,000 by $900,000, ($850,000 / $900,000 = 0.944). The result is a ratio, 0.944 is the profit margin.

  5. Step 4
    Profit margin can also be given in percentage by multiplying the profit margin ratio by 100 you get a percentage profit margin of 94.4%.
Posted 2009-09-18T13:30:31Z
 
3 helpful answers

The real estate trends are predictable as they develop over a long period & the risk factor is considerably low when compared with the stock market, which is rather volatile. It takes lot of time & practice to understand the efficiency of a real estate investment but over a period of time you will enjoy the security & hefty returns a real estate investment provides. Using the right metrics based on the regular analysis gives an exact picture which can help make better Home buying decisions. Identifying the right market & finding the best property holds the key to success. In fact there is a tool through which you can research, compare & identify best places to invest. Look into http://www.smartzip.com/s/sz/info/offer  for more information.

Posted 2009-09-22T12:58:45Z
 
4550 helpful answers

Love is the battery of life....

Hi Keegan,
You received excellent answers.  I'll make it much more simple:  Your profit is what you recieved for your product minus all your expences.  That is the gross profit (before tax etc).
Best regards,

Posted 2009-09-22T15:54:31Z
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