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Q: How can profit be higher than revenue?
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Related questions

How business make a profit?

by selling goods at higher revenue than the cost it was paid for.


How do you calculate GP Gross Profit when the revenue is less than the costs?

If revenue is less than costs, the gross profit is negative -- it is not a profitable company.


What does profit mean in math?

Profit is revenue minus costs. In merchandising, you have to pay for the items you sell, and you charge a higher amount to your customers. The difference between what you pay for them (cost) and what you get for selling them (revenue)_ is your profit. ■


What occurs when revenue is greater than expenses?

profit


What is the Difference between Normal profit and Economic Profit?

In economics, normal profit is often called the break-even point. It is the level of profit where all of the costs of your business, including the salary of the CEO, are covered. When a firm has normal profit but not economic profit, the total revenue of the firm equals the total cost of the firm. However, if a firm has economic profit, total revenue is higher than total cost.


What is a net margin?

The Net Profit Margin is an Expression of the Net Profit as a percentage of the Revenue, where the Net Profit is the Revenue minus all Expenses. The Net Profit Margin can be calculated in the following ways: Net Profit Margin = Net Profit/Revenue*100 [or] Net Profit Margin = (Revenue - all Expenses)/Revenue*100


Is a business making a profit when the revenue is less than its cost?

NO, if reveneu is less then cost then company is in loss as following forumula: Net profit (loss) = Revenue - Cost


profit margin?

it is also known as net profit margin. this ratio shows how much net income a company earns from operations. a higher ratio implies higher profit earned. profit margin is calculated as follows:profit margin = (Net income / Revenue) * 100


What is profit in a company?

profit in a company this is increase in revenue received by the company. profit in a company this is increase in revenue received by the company.


How do you calculate a profit margin ratio?

Profit Margin ratio is the comparison of profit as a percentage of revenue and calculated as follows Profit Margin ratio = Net Profit/Revenue


What is a profit or loss?

A profit is an ammount of money higher than erju


How is math used in stores?

cash register...profit...revenue cash register...profit...revenue