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Total revenue minus total costs is the total profit of a producer. This can be increased by increasing the price, decreasing the costs while keeping the price constant and/or increasing the sales of the product or service.
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∙ 8y ago
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Why total revenue equal to total cost?
No total revenue is total finance in, you need to take from this the running costs of the business to get the gross profit (net sales minus the cost of goods and services sold).
How does a firm calculate its profit?
total revenue minus total cost
True or False. Accounting profit equals sales revenue minus explicit costs?
True
Is Economic profit is found by subtracting accounting costs from total revenue?
yes
Prove that profit maximizing firm will always minimise?
Profit is equal to total revenue minus total costs, if a firm wants to maximize its profit it has to lower the cost of producing a given level of output and or increase the item price if there is a willing buyer. If a firm is not minimizing costs then there exists a way for the firm to increase profits.
What is the formula for finding a firm's profit?
Total Profit = Total Revenue minus Total Costs.
How is total revenue calculated?
Total revenue is calculated by multiplying the price of the product sold by the quantity sold. PQ = R. Total profit is total revenue minus costs incurred. R-C = P
What is revenue minus costs?
Profit
Why total revenue equal to total cost?
No total revenue is total finance in, you need to take from this the running costs of the business to get the gross profit (net sales minus the cost of goods and services sold).
What are revenues minus costs?
Revenue - Cost = Gross profit
How do i calculate percent profit?
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).
Does contribution margin equals revenue minus all variable costs?
Yes, Revenues minus variable costs gives you your contribution margin. Contribution margin minus fixed costs gives you net income.
Is Contribution margin equals revenue minus all variable costs?
yes.
What does net profit mean?
Total revenue minus total expensives
How does a firm calculate its profit?
total revenue minus total cost
What is netted revenue?
In the oil and gas industry it represents the working interest owner's share of gross revenue less taxes (production and severance), conservation fees, marketing and handling fees AND their share of operating costs. The owners costs are said to be "netted" against their revenue.
True or False. Accounting profit equals sales revenue minus explicit costs?
True
