How to calculate actual revenue achieved if you have profit and percent earned given?
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Answered by
0
Thank you for asking this question. I hope this helps you.
To calculate the actual revenue earned if you are given with profit and the percentage earned, you need to gross up. Let me explain this to you through example;
Suppose your profit is $ 1,000 and the percent earned is 25%.
Here, profit is actually 25% of the total revenue earned. So, in order to get to profit we can simply divide the profit by the percentage it is of the total amount.
Total Revenue = Profit/ Percentage
Total Revenue = 1000/ 25%
Total Revenue = 4000
We can justify this as follows;
Total Revenue = $ 4,000
Less: Cost = ($ 3,000)
Profit = $ 1,000
To calculate the actual revenue earned if you are given with profit and the percentage earned, you need to gross up. Let me explain this to you through example;
Suppose your profit is $ 1,000 and the percent earned is 25%.
Here, profit is actually 25% of the total revenue earned. So, in order to get to profit we can simply divide the profit by the percentage it is of the total amount.
Total Revenue = Profit/ Percentage
Total Revenue = 1000/ 25%
Total Revenue = 4000
We can justify this as follows;
Total Revenue = $ 4,000
Less: Cost = ($ 3,000)
Profit = $ 1,000
Answered by
3
Answer:
To calculate the actual revenue earned
if you are given with profit and the
percentage earned, you need to gross
up. Let me explain this to you through
example;
Suppose your profit is $ 1,000 and the
percent earned is 25%.
Here, profit is actually 25% of the total
revenue earned. So, in order to get to
profit we can simply divide the profit by
the percentage it is of the total amount.
Total Revenue = Profit/ Percentage
Total Revenue =1000/ 25%
Total Revenue 4000
We can justify this as follows;
Total Revenue = $4,000
= ($ 3,000)
Less: Cost
= $1,000
Profit
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