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it doesn't

cost is cost

revenue is revenue

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11y ago

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What products have the highest profit margins?

Products with the highest profit margins include prescription drugs, diamonds, fountain drinks, and designer clothing. Fountain drinks cost businesses a few cents, but cost consumers $1 to $2 on average.


The difference between price and average variable cost is defined as?

Profit contribution


What does gross profit include?

* + Net Sales * - Cost of Goods Sold (Expenses directly related to the goods that were sold) * ----------------------------------------------- * = Gross Profit


How do you get a retail price if you have the gross profit percent and cost?

Add the profit margin (cost*profit%) to the cost. Add the profit margin (cost*profit%) to the cost. Add the profit margin (cost*profit%) to the cost. Add the profit margin (cost*profit%) to the cost.


Sell price is 2602.58 cost price is 2090.42 what is the profit?

The basic formulas for profit are represented as follows: Profit = Price - Cost % Profit = Profit / Cost So, if an item sold for 2,602.58 and cost 2,090.42, the profit (absolute) is : Profit = 2,602.58 - 2,090.42 = 512.16 The % profit (relative to the cost) is: % Profit = 512.16 / 2,090.42 = 24.5%


If a perfectly competitive firm's price is above its average total cost the firm?

is earning a profit


How do you calculate the Gross Profit Margin?

The Gross Profit Margin is an expression of the Gross Profit as a percentage of Revenue. Gross Profit Margin = Gross Profit/Revenue*100 [or] Gross Profit Margin = Revenue - (Cost of Sales)/Revenue*100 Cost of sales=it include all those expenses and income that will occur during manaufacturing and sales of goods and services


What importance are average cost and marginal cost in economic analysis?

Average cost: determines the accounting profit maximisation and minimal point where the firm can remain profitable. Marginal cost: determines economic profit maximisation and minimal 'shut-down' point where the firm should still operate, even if at an accounting loss. Note: Average cost (AC) and marginal cost (MC) are related. The rate of change of AC is always positive when MC is positive.


What is the average net profit percentage of any business?

Between about 3% to 8% of the original cost of the product


How do you calculate Selling Price if you know Cost price and Profit percentage?

profit can be calculated from profit percentage and cost price.profit percentage=profit*100/cost price.profit=selling price-cost price


If average profit increases with output marginal profit must be?

greater than average profit.


Does net cost include mark up?

Net cost typically refers to the total cost of a product or service after all discounts, allowances, and returns have been deducted. It does not include markup, which is the amount added to the cost price to determine the selling price. Markup represents the profit margin that a seller adds to cover expenses and generate profit. Therefore, net cost and markup are distinct concepts in pricing.

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