Not right
It's probably 33 1/3 percent. Overhead - meaning rent, utilities & wages for employees takes a third. Replacing the items you sold takes a third. Your profit should also take a third.
16 percent of 20 items = 3.2 items16% of 20 items= 16% * 20 items= 0.16 * 20 items= 3.2 items
Profit can be described as Gross Profit, and Net Profit. To describe it in simple terms:Gross Profit is Revenue, minus Cost of materials directly associated with those revenues.Net Profit is Revenue, minus all costs (tangible and intangible) associated with the same time period as the revenue received.For the Cost of materials, this could be different things. For a store, which just sells items that it purchases, this would be the cost of the items which were sold. For a business that manufactures items or products, this would be the materials used to produce a product.The other costs, not directly related are things like rent, utilities, advertising, labor, interest on loans, and then (intangible) depreciation and amortization of assets. These costs are incurred regardless if anything is sold (in the short term, anyway - if things don't improve, then changes would need to be made, like moving to a less expensive space, reducing labor expenses, etc.)Whichever Profit that you are interested in, the Percent Profit is calculated by dividing the profit dollars by the revenue dollars, then multiply by 100% to get as a percentage.Example: Revenues were $5000 in a given month. Total costs for that month were $4200. The amount of profit is $800 ($5000 - $4200), and the percent profit = ($800)/($5000) x 100% = 16%
I think you can alch it and get profit.
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Fifty five cent
Let's say your item costs ten dollars. At a fifty percent discount, you pay five dollars. If you buy one, get one half, you pay fifteen dollars for items that would regularly be twenty dollars. That's a twenty-five percent discount.
Business net profit is adjusted for things like tax depreciation as well as some items which are not allowed by tax department as expense or income or deduction to arrive at taxable profit.
Speculators
Prior period items
No, it is not illegal to purchase items and then resale them for a profit. This is how businesses make their money.
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