Question

What is the profit percentage formula in terms of income and expenditure.

Answer 1

= SellingPrice–CostPriceCostPrice × 100

= 45–2020 × 100

= 2520 × 100

= 1.25 × 100

= 125%

Answer 2

When you run a business, knowing the profit percentage is important to analyse the financial health of your business

When you are working for a company and earning money, knowing the profit percentage is important to analyse the financial health of your own self

Income means the money that you earn when you run a business or when you work for a company for some defined period like 6 months or so

Expenditure means the money you/ your business spend for the same defined period for which the income is calculated.

Profit percentage over that defined period can be determined using the below formula

$Profit percentage =\frac{Income-Expenditure}{Expenditure} * 100$