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For non-profit organizations, revenue may be referred to as gross receipts, support, contributions, etc. [5] This operating revenue can include donations from individuals and corporations, support from government agencies, income from activities related to the organization's mission, income from fundraising activities, and membership dues.
Revenue: Sales $2,000.00 Less Sales returns and allowances $20.00 ... Net profit = net sales – cost of goods sold – operating expense – taxes – interest.
For a business, gross income (also gross profit, sales profit, or credit sales) is the difference between revenue and the cost of making a product or providing a service, before deducting overheads, payroll, taxation, and interest payments. This is different from operating profit (earnings before interest and taxes). [1]
Gross profit margin is calculated as gross profit divided by net sales (percentage). Gross profit is calculated by deducting the cost of goods sold (COGS)—that is, all the direct costs—from the revenue. This margin compares revenue to variable cost. Service companies, such as law firms, can use the cost of revenue (the total cost to achieve ...
Most people find it easier to work with gross margin because it directly tells you how much of the sales revenue, or price, is profit: If an item costs $100 to produce and is sold for a price of $200, the price includes a 100% markup which represents a 50% gross margin. Gross margin is just the percentage of the selling price that is profit.
Net profit on a P & L (profit and loss) account: Sales revenue = price (of product) × quantity sold; Gross profit = sales revenue − cost of sales and other direct costs; Operating profit = gross profit − overheads and other indirect costs; EBIT (earnings before interest and taxes) = operating profit + interest income + other non-operating ...
Return on sales (ROS) is net profit as a percentage of sales revenue. ROS is an indicator of profitability and is often used to compare the profitability of companies and industries of differing sizes. Significantly, ROS does not account for the capital used to generate the profit. In a survey of nearly 200 senior marketing managers, 69 percent ...
Revenue Sales revenue $20,438 Cost of goods sold: $7,943 Gross profit $12,495 Operating expenses Selling, general and administrative expenses $8,172 Depreciation and amortization: $960 Other expenses $138 Total operating expenses $9,270 Operating profit $3,225 Non-operating income $130 Earnings before interest and taxes (EBIT) $3,355 Financial ...