QUESTION IMAGE
Question
vocabulary term definition formula
net profit is the money left after all costs
have been deducted from _.
revenue - expense = net profit
slide 24
$60 revenue - $50.04 expense = _ net profit
$300 revenue - $250.20 expense = _ net profit
vocabulary term definition formula
profit margin shows the _ of
revenue that becomes profit, highlighting
the businesss efficiency.
(net profit/revenue) × 100 = profit margin
slide 26
$0.83 net profit per unit ÷ $5 selling price per unit = _
vocabulary term definition formula
return on investment measures how
efficiency an investment generates profit
_ to its cost.
(net profit - investment cost/investment cost) × 100 = return on investment
slide 27
($30,000 net profit - $7,500 investment cost ) / $7,500 investment cost =
× 100 = _ roi
a good roi, generally 10% to 15% return on investment. an excellent roi, typically start around 20% or higher
pricing strategy (slide 28)
pricing strategy is how a business sets _ to cover costs and make a profit.
Step1: Net Profit Formula
According to the formula Revenue - Expense = Net Profit, the first blank is Revenue.
Step2: First Net Profit Calculation
For $60$ revenue and $50.04$ expense, $60 - 50.04=\$9.96$.
Step3: Second Net Profit Calculation
For $300$ revenue and $250.20$ expense, $300 - 250.20=\$49.80$.
Step4: Profit Margin Definition
Profit Margin shows the percentage of revenue that becomes profit.
Step5: Profit Margin Calculation
Using the formula $\frac{Net\ Profit}{Revenue}\times100$, with $0.83$ net - profit per unit and $5$ selling price per unit (revenue per unit), $\frac{0.83}{5}\times100 = 16.6\%$.
Step6: Return on Investment Definition
Return on Investment measures how efficiently an investment generates profit relative to its cost.
Step7: Return on Investment Calculation
First, $(30000 - 7500)\div7500=3$, then $3\times100 = 300\%$.
Step8: Pricing Strategy Definition
Pricing strategy is about setting prices to cover costs and make a profit.
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- Revenue
- $9.96
- $49.80
- Percentage
- $0.83\div5\times100 = 16.6\%$
- Relative
- $(30000 - 7500)\div7500\times100 = 300\%$
- Prices