0
My profit = the price I charge - my costs If it costs $1.00 to make a widget, and I sell it for $2.00 then my profit is $1.00. Now if I sell my widget for $3.00 my profit is $2.00.
What else can I help you with?
Why increase in selling price doesnt increase profit?
It is simple that if the selling price is increased more then of cost increase then profit will increase but if selling price increased less then cost increased then there will be less profit or selling price increased in same proportion to cost increased then there may be no increase in profit. Besides that there may be so many other reasons for that.
How price effects can be decomposed into its income effect?
price effects income directly. if price is high then demands will down and profit will high. if price is low demand will increase. and profit will minimum. but due to high selling amount profit can be increase.
How does increases in price increase profit?
My profit = the price I charge - my costs If it costs $1.00 to make a widget, and I sell it for $2.00 then my profit is $1.00. Now if I sell my widget for $3.00 my profit is $2.00.
If a cycle manufacturer reduced selling price of cycle by 50 the number of cycle sold radically increased by 600. Initially the manufacturer was getting only 140 profit. What is the percentage increas?
To find the percentage increase in profit, we first need to determine the initial profit and the new profit after the price reduction and increase in sales. Initially, the profit was 140. If the selling price is reduced by 50 and the number of cycles sold increases by 600, the new profit can be calculated as follows: New profit = (Selling price - Cost price) * New quantity sold - (Selling price - Cost price) * Initial quantity sold = (Selling price - Cost price) * (Initial quantity sold + 600) - Initial profit. Assuming the cost price remains constant, you would need the initial selling price and cost price to compute the exact new profit and hence the percentage increase accurately. However, if we assume the profit doubles due to the increased sales, then the percentage increase would be roughly 100%.
What is the price effect according to the law of supply?
The law of supply says; The supply will be increase due to increase in price and vice versa. The reason is that the seller will maximize his profit.
When a firm is maximizing profit what else will it maximize?
When a firm maximizes its profit, it automatically maximizes its shareholder value. When both profit and the shareholder value increase, in course of time, the overall firm value will increase. All these would undoubtely increase its share price in the market as well.
What is the profit?
fomula for profit is Sell price - Cost price= profit
How do you find original price from profit?
To find the original price from profit, you need to know the profit amount and the selling price. The formula is: Original Price = Selling Price - Profit. If you also know the profit margin (percentage of the selling price that is profit), you can use the formula: Original Price = Selling Price / (1 + Profit Margin). This allows you to calculate the original price based on the profit earned.
Why the objectives increase profit by 10 percent and increase market share by 5 percent may be difficult to achieve at the same time?
Simply because - increasing the price to gain the 10% profit gain is easy. Selling goods at the inflated price may price you out of the market - thus you would fail to increase your market share. Customers will always want value for money !
How do you calculate cost price when given sell price and profit percentage?
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
What is the farmula profit?
fomula for profit is Sell price - Cost price= profit
How does gross profit margin increase?
Increase in the price at which you SELL the good if the cost price at which you BOUGHT/PRODUCED the good remains the same or Decreased Cost Price with a Stable Selling Price. Basically anything that would result in the difference between the Selling Price and Cost Price increasing favourably.
