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
\\( \frac { \text { net profit } } { \text { revenue } } \times 100 = \text { profit margin } \\)
the businesss efficiency.
slide 26
$0.83 net profit per unit \div $5 selling price per unit = _
vocabulary term definition formula
return on investment measures how
\\( \frac { \text { net profit - investment cost } } { \text { investment cost } } \\) \\( \times 100 = \text { return on investment } \\)
efficiency an investment generates profit
_ to its cost.
slide 27
\\( ( \\$ 30,000 \text { net profit } - \\$ 7,500 \text { investment cost } ) / \\$ 7,500 \text { investment cost } = \\) _ \\( \times 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.

Explanation:

Slide 24

First row

Net Profit is calculated by subtracting expenses from revenue. So the blank in the definition is "Revenue".

Second row

Using the formula \(Revenue - Expense=\text{Net Profit}\), for \( \$60\) revenue and \( \$50.04\) expense:
\(60 - 50.04=9.96\)

Third row

For \( \$300\) revenue and \( \$250.20\) expense:
\(300 - 250.20 = 49.8\)

Slide 26

First row

Profit Margin shows the "percentage" of revenue that becomes profit (from the formula \(\frac{\text{Net Profit}}{\text{Revenue}}\times100=\text{Profit Margin}\), which is a percentage - based measure)

Second row

Using the formula \(\frac{\text{Net Profit}}{\text{Revenue}}\times100\) (here, net profit per unit is like net profit and selling price per unit is like revenue). \(\frac{0.83}{5}\times 100=16.6\%\)

Slide 27

First row

Return on Investment measures how efficiently an investment generates profit "relative" to its cost (the formula \(\frac{\text{Net Profit}-\text{Investment Cost}}{\text{Investment Cost}}\times100\) shows the relation of profit to cost)

Second row

First, calculate \(\frac{30000 - 7500}{7500}=\frac{22500}{7500}=3\), then \(3\times100 = 300\%\)

Slide 28

Pricing strategy is how a business sets "prices" to cover costs and make a profit.

Answer:

• Slide 24:
• First row: Revenue
• Second row: \(9.96\)
• Third row: \(49.8\)
• Slide 26:
• First row: percentage
• Second row: \(16.6\%\)
• Slide 27:
• First row: relative
• Second row: \(3\), \(300\%\)
• Slide 28: prices