Average profit =total profit divided by
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Answer:
By dividing the overall profit for the year by the number of years of profit, the average profit is computed.
Explanation:
- Average revenue, average cost, and average profit could be the formula for calculating average profit.
- The definition of average profit is total profit divided by output or total profit for each period divided by the total number of periods. The equation average revenue - average cost = average profits could be used to calculate average profits.
- The equation average revenue - average cost = average profits could be used to calculate average profits. For instance, if a company earns $100, $200, and $300 in the first three years of operation but incurs a $200 loss in the fourth, its profit calculation would be ($100 + $200 + $300 - $200) - multiplied by 4.
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