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Will a firm avoid any cash shortage if the sales revenue exceed all costs?
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What is business profit?
Profit is revenue, generated through sale of products and services, minus the costs of producing/distributing those products and services. When the revenue generated in a period of time exceeds the company's costs, the company has achieved a profit. If the costs incurred by the company exceed the revenue generated in a period of time, the company has a loss.
What are the relationship of carrying cost ordering cost and shortage cost?
The relationship between shortage costs and carrying costs are inverse. The relationship between ordering costs and carrying costs depends on how much the company has on hand as compared to how much they must order. And if shortage costs are high, both other types will also be high.
What are the types of inventory costs?
Item (set-up) costs, holding (storage) costs, and shortage costs (demand > product).
What is revenue minus costs?
Profit
Profits will be maximized when marginal revenue?
Profits will be maximized when marginal revenue is equal to marginal costs. This will only happen in cases where there are fixed costs.
What is the break even revenue?
Amount of revenue that is needed to cover all of the fixed costs.
Profits is calculated by subtracting costs from what?
Profit is calculated by subtracting costs from revenue.
Calculate costs as a percentage of revenue?
15%
Subtracting costs from revenue calculates?
profit
How do you calculate GP Gross Profit when the revenue is less than the costs?
If revenue is less than costs, the gross profit is negative -- it is not a profitable company.
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).
What is the total revenue at break even point if Ace corporation's variable costs are equal to 43 percent of sales revenue and their fixed costs per month are 600000?
Revenue at BREAK EVEN point is $0.00
