Answer:
The answer is not complete. I will explain the concept of profit to you.
Step-by-step explanation:
We can determine profit deducting direct costs (cost price) of commodities from sales (selling prices) of the commodities.
Profit = Selling Price - Cost Price
Example:
A trader buys some dresses for #2,500 in May and agrees to pay for it in three months’ time. He sells off all the dresses in August for #4,500. The profit for the month is #2,000.
The formula for percentage profit is [tex]\frac{profit * 100}{cost price}[/tex]
The formula for gross profit is Revenue – Cost of Sold Items
Profit Margin = [tex]\frac{Total Income}{Net Sales}[/tex] * 100
While Gross Profit Margin can be calculated as [tex]\frac{Gross Profit}{Net Sales}[/tex] * 100
Any of these formulas can be used to calculate profit-related questions.
