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Profit is calculated by subtracting costs from revenue.
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The amount of money earned after subtracting the costs associated with that earning is known as?
profits
How do you calculate profit maximizing price?
The answer depends on what information you have about profits per units sold, or on the costs and revenues per unit.
When other factors are constant what is the effect on profits of an increase in fixed costs Of a decrease in variable costs?
From the perspective of the income statement and profits, there is no difference between bucketing costs in variable or bucketing them in fixed. The operating profit line of the income statement takes both costs into account so that an increase in one with an offsetting decrease in another will have zero impact to profits. Issue related to bucketing of certain items are normally internal discussions for a business and relate to various scorecards or metrics of interdepartmental performance. In most businesses there are separate mgrs and depts responsible for variable cost and fixed costs so the debate over where to bucket certain items is driven by whose scorecard they fall onto and ideally costs should be bucketed internally onto the scorecard of the mgr/dept with the greatest ability to influence those costs.
What happens to tens digit and the ones digit when you subtract?
The answer will depend on what you are subtracting! The answer will depend on what you are subtracting! The answer will depend on what you are subtracting! The answer will depend on what you are subtracting!
Why is revenue important to all business's?
Revenue is important because it tells you how much money overall is coming into the business and after subtracting the costs you can see what your overall profit is.
