2006-09-26 16:54:07 · 4 answers · asked by GLENN D 2 in Business & Finance ➔ Corporations
Profit margins and overhead costs vary greatly from industry to industry.
Profit can be calculated in several ways.
1. As a percentage of your cost of an item you are selling called mark up.
2. As a percentage of Sales called Margin.
Either one of these methods would give you a Gross Profit.
You then deduct the costs of running your business not directly related to the product or service. Leaving you Net Profit before Taxes
Most successful businesses charge at least twice the amount of the cost of producing a product or at least 50% of the sales price should be Gross profit. This is two ways of stating the same thing.
2006-09-26 17:13:30 · answer #1 · answered by newsreader325 2 · 0⤊ 0⤋
Reinvestment is the Profit of a Successful Business.
2006-09-26 19:13:16 · answer #2 · answered by inventor 1 · 0⤊ 0⤋
This might be more useful than profit - Economic Value Added. See the link for a brief explanation. Or just google Economic Value Added.
2006-09-26 17:02:36 · answer #3 · answered by dryheatdave 6 · 0⤊ 0⤋
profit
2006-09-26 17:14:33 · answer #4 · answered by abhijit 2 · 0⤊ 0⤋