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expected profit should be : 0.7($36,000) - 0.3($6,000) = $23,400
Opportunity cost can be defined as the cost of any activity measured in terms of the value of the next best alternative foregone (that is not chosen). It is the sacrifice related to the second best choice available to someone, or group, who has picked among several choices. Opportunity Cost is a choice depends on what has to taken up. We can have an option of two or more options has Opportunity cost. Opportunity Cost is helpful when calculating the price and profit of choices. Although opportunity costs are not generally considered by accountants-financial statements only include explicit costs, or actual outlays-they should be considered by managers. Most business owners do consider opportunity costs whenever they make a decision about which of two possible actions to take. Small businesses factor in opportunity costs when computing their operating expenses in order to provide a bid or estimate on the price of a job.
A derived attribute's values is derived from other attribute. It is a figure that relies on other figures to form an answer, like figuring out profit from a sale.
Exclusive distribution generally only works for products that have a high price and high profit margin. Using this method focuses on one dealer, which is a major disadvantage.
It is the same as Law of Diminishing Returns. Which is the postulate that as more units of a variable resource are combined with a fixed amount of other resources, using additional units of the variable resource will eventually increase profit only at a decreasing rate.
Reserve is a an amount set aside from the profit when it is calculated. On the other hand provision is an amount charged against profit and loss in order to assist in calculating the accurate profit.
profit
It is 100*profit/costs.
The income of a country can be calculated by three different procedures. The products produced, domestic profit and the amount spent.
Controllable profit measures managerial performance Divisional profit measures divisional performance.
Operating expense is a loss, but is used in calculating overall profit.
Profit is calculated by subtracting operating costs from gross revenues.
Profit is calculated by subtracting __costs__ from revenues. Apex answers
hey here comes the answer of calculating bonus=overtime hours multiplied by rate per hour ..........thanks
Sales Less: Cost of sales Gross Profit Less: Admin Expenses Selling Expenses Other Expenses Net Profit
You calculate loss the same as you would do profit income minus expenses (outgoings) = profit/loss If the answer is negative then you are making a loss, if the answer is positive then you are making a profit.
profit margin = net income / total revenue