$3oo.Oo
First, I will attempt to translate your question. A man bought abc stock at $19.625 per share and sold it at $23.25 per share. What was his profit on 80 shares before deductions for commissions and taxes? Assuming my translation is correct, his gross profit was ($23.25 - 19.625) x 80.
40
1.25%
you take the earning before interest and taxes
$25.60
$23.25 - $19.65 = $3.60/share $3.60 x 80 = $288.00 gross profit
First, I will attempt to translate your question. A man bought abc stock at $19.625 per share and sold it at $23.25 per share. What was his profit on 80 shares before deductions for commissions and taxes? Assuming my translation is correct, his gross profit was ($23.25 - 19.625) x 80.
If bought at 19.65 and sold at 23.25 per share the profit from one share is equal to 3.60. For 80 shares the profit would be 288.
Gross means 'before', net means 'after'. Gross profit = sales - cost of sales Net profit = sales - cost of sales - overheads (e.g. telephone, electricity) So gross profit is before deductions, whereas net profit is after all the deductions.
23.25-19.65=3.6 3.6*80=$288 $288 is the total profit.
The original price is the price before adding a profit/costs or before deductions.
Since the man bought 80 shares and each of them costs 19.65, he spent: (80)(19.65) = 1572 He sold it for: (80)(23.25) = 1860 So his profit is: 1860 - 1572 = 288
Profit on each share = (23.25 - 19.65) = 3.60Profit on 80 shares = (80) x (3.60) = 288, before commissions and taxes.
profit?
It's not typical in any industry that pays commission. To be clear, there is a different between gross profit and gross sales. Either way, paying commission on either is not the standard.Gross profit and gross sales implies a number beforing taking out sales taxes that a company must pay.Typically, commission is paid on net profit or net sales because the "sales person" because the company has to pay the taxes and the sales person had no bearing on these taxes.Look at it this way. When tipping (which is really like paying commission) a waiter/waitress, you should tip on the amount before taxes are added not after. Taxes are a product of the state laws, etc, not the business charging the taxes. The waiter has noting to do with something the state charges.
in the trading and profit and loss account where do i put commission payable
Commission received will appear on the credit