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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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