How to calculate economic profit

If you set a goal to increase the efficiency of trading firms, the "lay" in the margin product the expected profit. What is the result you will achieve depends on the method of calculation of allowances. If we are talking about small shops, define trading margin "manually" and you don't have to spend money on expensive software. Start from the total turnover, the turnover of the average percentage of range of remaining goods.

How to calculate economic profit
How to calculate profit
How to calculate profit before tax
What is the annual revenue, net income, profit

Instruction

Count the gross income on the total turnover, if a single percentage markups applied to all items. In this case, first install gross income, then determine the margin. To calculate gross income, total turnover multiply by the estimated allowance trading, and the result divide by one hundred. To calculate markup, you first fold 100 and the markup percentage, then the same allowance trading divide by the result.

If in your case you are working with is not the same allowance for different groups of goods, calculation of profit is complicated. Be sure to keep records of trade. To calculate gross income in this situation, first multiply the markup of each commodity group to the value of their trade, then add up all the results and divide the sum by one hundred.

Can you calculate the profit to use the bonus at the average percentage, if take into account the goods at sale price. To get the value of the gross revenue at the average percentage, multiply the value of turnover on the average percentage of the gross income. The result, divide by 100. If you need to find the average percentage of gross income, first fold the allowance trading for the rest of the products in the beginning of the reporting period and the margin on the received current time products. From the amount deduct the trading margin for the outgoing (write-off or refund). This is your first result, calculating the average percentage. Now fold the amount of the turnover and the balance at the end of the reporting period, the amount, divide by 100, you got the second result. Now the first result to divide on the second result.

If you expect gross revenues to range balance, consider the amount of trade margins. For this record accrued sales allowances to each product. At the end of the month inventory, to determine these amounts. To calculate gross income in the range of the rest of the goods, first fold the allowance trading balance of goods in the beginning of the reporting period and allowance trading for goods received during the same period, from the amount subtract the trade allowance for the outgoing goods, and from the result subtract the margin on the balance at the end of the reporting period.

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