what is the scientific name for profit
Answers
Answer:
profit is also called net income and is the amount earning that express an expense for a period...
Step-by-step explanation:
Profit in Maths is considered as the gain amount from any business activity. Whenever a shopkeeper sells a product, his motive is to gain some benefit from the buyer in the name of profit. Basically, when he sells the product more than its cost price, then he gets the profit on it but if he has to sell it for less than its cost price, then he has to suffer the loss.
The concept of profit and loss is basically defined in terms of business. Any financial benefit gained in business goes to the owner of the business. Let us learn in this article how to calculate the profit amount and percentage with the help of formulas and related topics.
Table of Contents:
Definition
Formula
Profit Percentage
Types of Profit
Gross Profit
Operating Profit
Net Profit
How to Calculate Profit?
Examples
FAQs
Profit Definition
In general, the profit is defined as the amount gained by selling a product, which should be more than the cost price of the product. It is the gain amount from any kind of business activity. In short, if the selling price (SP) of the product is more than the cost price (CP) of a product, then it is considered as a gain or profit. It describes the financial benefit obtained if the revenue from the business activity exceeds the taxes, expenses, and so on, which are involved in sustaining business activities.
Profit Formula
Profit is explained better in terms of cost price and selling price. Cost price is the actual price of the product or commodity and selling price is the amount at which the product is sold. So, if the selling price of the commodity is more than the cost price, then the business has gained its profit. Therefore formula to calculate the profit is;
Profit or Gain = Selling Price – Cost Price
But, when the product is sold at selling price lesser than the cost price, it is termed as loss. Therefore,
Loss = Cost Price – Selling Price
Profit Percentage
Once the profit is calculated we can also derive the percentage profit e have gained in any business by the formula given here;
P% = (P/CP) × 100
Where P is the profit and CP is the cost price.
Types of Profit
There are three types of profit used in business. They are:
Gross Profit
Operating Profit
Net Profit
Gross Profit
Gross profit is the amount gained by any business or company after removing the cost associated with the making and selling of the product from the selling price. The revenue yielded in the company’s income after sales of the commodity should be reduced by the amount or cost it took to make the product or provide any service to the customer’s, to get the gross percentage of the profit.