How profit calculated in business?

Question

If the cost price is Rs 100.....
and the selling price is Rs 150....
How much profit can we say 50% or 33.33%....
Its not easy to answer just think and answer me please.

Answer 1

50 percent

Answer 2

There are many different profit calculations. Usually though profit is measured as a percentage of revenue so if you sell the product for Rs 150 (this is your revenue) 50% profit is Rs75. 1/3 (33.33%) profit is then 1/3 * 150 = Rs50. So If the cost price is Rs100 and the sales price is Rs150 then profit is 33.33%.

By the way the answer will be different if the sales price includes a value added tax. Profit is calculated WITHOUT value added tax!

I hope this answers your question! I wish you a lot of luck, especially if you are working on starting a business!!

Answer 3

If you mean cost price includes: all raw materials, production cost, overhead expenses, and transportation, direct and indirect expenditure which does not include tax than the profit is 50% not 33.33% I do not know where from you got this 33.33% profit calculation it is a mandatory bonus equation. Profit you can make even 100%. If this is quite enough I feel I am happy.

Answer 4

Profit is normally percentage of turnover. Profit of 33.33% on G.T.O. You can also say, I made 50% profit on my cost. I sell passport form for 5/- and shopkeeper sells it for 10/-. I telll him that he can earn 100% on his investment. His profit is 50%. 50-50.

Answer 5

Hi,
Better to ask an auditor or consultant for wise advice.