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Profit Profit
A business can earn a positive gross profit on its sales and still have a net loss. The gross profit is simply the sales minus cost of goods sold. If the gross profit is less than expenditure, it will result into a net loss.
Profit or loss from sales is part of capital of business and that's why it is shown in balance sheet as an addition or deduction from the capital of business to show the net effect of operations.
The elementary business and economic formula for deriving profit requires the variables of sales and cost to be known. Profit will equal net sales minus total costs.
Sales is a revenue not an expense or asset while difference between sales and expense is profit which is liability for business.
Yes, a business can have a net loss even though they have a positive gross profit from sales. Expenses like rent, utilities, etc. have to be figured in, too.
That level of sales at which profit if the business is zero or revenue earned is equal to cost incurred.
A sales margin is defined as the ratio got by dividing net profit by sales. This is one of the best indicators to measure success of your business.
A simple answer - expenses increased somewhere within the business. If sales increase, then so should the profit margin theoretically. If the profit margin decreases, then expenses increased.
total sales or business (loss or profit) done in a financial year
It's called a positive cash flow or profit.(Costs + Liabilities) - Sales = Profit/Deficit
if demand for anything is more than that product will sell more, if there is no demand for an item then that will not sale.so if sales are more there would be more profit ,if sales are less profit will also less. more profit means a good business and less profit means that business is not in a good position. i hope now u can understand it.shortly more consumer demand more good business,less consumer demand less business.