Remember: Gross profit = SP-CP Activity 1.2 Complete the following table: Table 1.2: Finding the cost price, the gross profit or the selling price Na Castprice Gross profit Selling price 1.2.1 R$ 600 RB 700 1.2.2 R3 400 30% 1.2.3 R12 700 R6 800 1.2.4 R17 500 R35 000 The owner of an enterprise has to calculate both the gross and the net profit. A business has certain operating expenses that must be deducted from the gross profit to get the net profit. Examples of operating expenses are: • Salaries Wages Rent paid/rent expense Advertisements. Stationery. www P The cost of advertising the business is one example of an operating expense. Gross profit minus operating expenses equals net profit.

Remember: Gross profit = SP-CP Activity 1.2 Complete the following table: Table 1.2: Finding the cost price, the gross profit or the selling price Na Castprice Gross profit Selling price 1.2.1 R$ 600 RB 700 1.2.2 R3 400 30% 1.2.3 R12 700 R6 800 1.2.4 R17 500 R35 000 The owner of an enterprise has to calculate both the gross and the net profit. A business has certain operating expenses that must be deducted from the gross profit to get the net profit. Examples of operating expenses are: • Salaries Wages Rent paid/rent expense Advertisements. Stationery. www P The cost of advertising the business is one example of an operating expense. Gross profit minus operating expenses equals net profit.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

How much would be needed today to provide an annual amount of $50000 each year for 20 years, at 9% interest each year? a. $546,000 O b. $456,427 O c. $645,000 O d. $456,000
Find the profit maximizing output given the following revenue and cost functions:R(q) = 1000q – 2q2C(q) = q3 – 59q2 + 1315q + 2000
The price of a product is expressed as ?, PHP = 10 – 28? where ? is the demand. Which of the following correctlyexpresses the total revenue? 10 − 28?2 28? = 10 10? − 28? 10? − 28?2
Management has at its disposal the following information: Revenue function: R =890Q ‒5.5Q2 The profit-maximizing price: P=494 OMR. Then the Profit-maximizing quantity is (............) Units. (write only the number) Answer:
Describe how the value chain can help a business analyze its cost structures. $#@!×%&([*??;:'--$^%××÷&((;%$%%
Refer to the pictur ebelow: Find: 1. Total Cost of Product A under ABC System2. Total Cost of Product B under ABC System3. Selling Price per unit of Product B assuming profit margin of 20% above cost
Which of these is not an objective of Cost Accounting? O a. Ascertainment of Cost O b. Cost Control and Cost reduction O c. Determination of Selling Price O d. Assisting Shareholders in decision making A MOS Jump to... 74% LC ..ais F1
Which of the following option shows the rate at which company is earning profit? Select one: a. All options are correct b. Margin of safety c. Contribution margin d. Profit volume ratio
explain your solution Operating margin Market Ratio Operating income Current Ratio = Ravenue 6957873 73686228 = 0.094 Grooss profit cost of goods solds = 0.561 26505347 47180881 Current Assets Current liabilities 72595989 53459728 = 135795657
R (X) = 55x and C (x) = 30x + 250 for total revenue and total cost functions a-) profit function pi (x) for firms and b-) Find the breakeven point.
Return on investment (ROI) could be calculated using which of the following formulas? W Multiple Choice O O X Margin * (Net operating income + Sales) O X O Margin x (Average operating assets + Sales) X Margin * (Sales - Net operating income) Type here to search X Margin × (Sales - Average operating assets) < Prev 2 of 10
4\ Management has at its disposal the following information: Price Information : P= 2400-30Q The profit-maximizing price: P=240 Dollar Find the Profit-maximizing quantity.