profit roughly = total cost of making product*15-30%
Divide a profit number by some other number then multiply by 100 to get a %.
The other number used may be "sales", "net sales", assets, equity, number of shares outstanding or any other number that might provide an enlightening ratio.
profit can be calculated from profit percentage and cost price.profit percentage=profit*100/cost price.profit=selling price-cost price
Gross Profit/Net Sales = Gross Profit Margin.
Selling price = Cost of goods sold + Gross profit percentage on sales
Profit Margin ratio is the comparison of profit as a percentage of revenue and calculated as follows Profit Margin ratio = Net Profit/Revenue
(Net profit/Net Revenue) * 100 = Net Profit Percentage Ex: Net Revenue = 10,000 USD Expenditure = 7500 USD Profit = 2500 USD Profit Percentage = 2500/10000 * 100 = 25%
Cost Price = Selling Price - Profit Profit = Selling price * profit percentage Example: Selling Price = 10 Profit % = 50% Profit = 10*50/100 = 5 Cost price = 10 - 5 Cost Price = 5
Cost = Selling Price - Gross Profit By using this formula or method easily we can get the selling price of the product
Multiply the cost price by the profit margin plus 100%. SP=CP*(1+PP)
We should calculate the profit on sales
The answer will depend on profits as a percentage of what! As a percentage of revenue, it would be 100*(Total Revenue - Total Costs)/Total Revenue In example (as given in discussion page) Total Revenue = 236,000 Total Costs = 173,000 Total Profit = Total Revenue - Total Costs = 63,000 So percentage profit = 100*63,000/236,000 = 26.7% (approx).
The Gross Profit Margin = Gross Profit/Revenue*100 regardless of weather the Gross Profit is positive or negative (a loss). Therefor, it is acceptable to have a negative Gross Profit Margin.
net profit/sales