You receive the following figures: Sales 85000, Cost of Sales 15000, Rent 5000, Advertising Expenses 7000. Calculate the Net Profit.

Net Profit is the money left over from sales after expenses have been accounted for.First, we need to calculate the Gross Profit. This is Sales - Cost of Sales, so (85000 -15000). Our Gross Profit is £70 000. Next, we move on to calculating the total expenses of the period. Rent + Advertising Expenses are all the given expenses, so (5000 + 7000). The expenses are £12 000. Finally, Net Profit = Gross Profit - Expenses. Therefore, our Net Profit is £70 000 - £12 000 = £58 000.

GM
Answered by George M. Business Studies tutor

1655 Views

See similar Business Studies GCSE tutors

Related Business Studies GCSE answers

All answers ▸

What is the difference between a public limited company and a private limited company?


What is a stakeholder? Identify two stakeholders and there role in a business.


Describe the methods which may be used to motivate employees.


What is meant by organic growth of a business?


We're here to help

contact us iconContact ustelephone icon+44 (0) 203 773 6020
Facebook logoInstagram logoLinkedIn logo

© MyTutorWeb Ltd 2013–2025

Terms & Conditions|Privacy Policy
Cookie Preferences