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COMPUTATION OF GROSS PROFIT

The document explains the concept of profit, emphasizing its importance in assessing a business's financial health and decision-making. It provides a practical example involving a perfume business, calculating expected profit based on revenue and expenses. The document concludes with contact information and a thank you note from the presenting group.

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MARY JOSEPH OCO
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2 views

COMPUTATION OF GROSS PROFIT

The document explains the concept of profit, emphasizing its importance in assessing a business's financial health and decision-making. It provides a practical example involving a perfume business, calculating expected profit based on revenue and expenses. The document concludes with contact information and a thank you note from the presenting group.

Uploaded by

MARY JOSEPH OCO
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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COMPUTATION

OF GROSS
PROFIT
Presented by: Group 4
WHAT IS
PROFIT?
PROFIT
• Profit is a financial gain from
a transaction or from a period
of investment or business
activity, usually calculated as
an income in excess of costs
or the final value of an asset
in excess of its initial value.
• It is the total revenue minus total expenses,
profit is the amount of money a business
"makes" during given accounting period.

• The more profit you make, the better, as profit


can be re-invested into the business or retained
by the business owners.

• Being able to accurately determine your


business' profit is an essential part of being to
judge its financial health. It can also help you
decide how to price your good and services, how
to pay your employees, and more.
• To make your business gain more profit, begin by
adding up all of the money your business has
made in a set period of time (either quarterly,
yearly, monthly, etc.) other sources, like
products sold, services rendered, membership
payments, or, in the case of government
agencies, taxes, fees, the sales of resource
rights, and so on.

• Note that you will need to subtract any amount


of cash refunded to customers for returns or
disputes in order to find an accurate figure for
your total income.
REVIEW
REVENUE OF A BUSINESS
• An important tool and material needed in the operation of the business.

• It is said that revenue is the result when sales exceed the cost to produce
or manufacture goods/merchandise as well as cost incurred in selling
REVIEW
FORECASTING
• Forecast is advance information that could help us prepare and get ready
for any incoming event.

• Forecasting is the tool used in planning that aims to support


management or a business owner in his desire to adjust and cope with
uncertainties of the future.
ACTIVITY 1
Read and understand the given problem.

Rodrigo is engaged in a buy-and-sell business of


perfumes. He bought 10 boxes of perfumes. Each
box costs P12,000.00 and contains a dozen of
perfume bottles. He is planning to sell one perfume
bottle at P1,500.00. What is his expected profit on
the 10 boxes of perfumes
The ultimate goal of any business whether retail or
wholesome is to earn a profit. Getting the
difference between the amount of money earned
from the selling 10 boxes containing a dozen of
perfume bottles and the cost of those 10 boxes
gives the profit.
Rodrigo is engaged in a buy-and-sell business of perfumes. He
bought 10 boxes of perfumes. Each box costs P12,000.00 and contains a
dozen of perfume bottles. He is planning to sell one perfume bottle at
P1,500.00. What is his expected profit on the 10 boxes of perfumes

EXPENSES NO. OF MONEY


PIECES EARNED
10 boxes of perfume for 10 boxes with a P1,500.00 each
P12,000.00 each dozen of perfume perfume bottle
each

(10) x (12, 000) (10) x (12) (120) x (1,500)


Rodrigo is engaged in a buy-and-sell business of perfumes. He
bought 10 boxes of perfumes. Each box costs P12,000.00 and contains a
dozen of perfume bottles. He is planning to sell one perfume bottle at
P1,500.00. What is his expected profit on the 10 boxes of perfumes

EXPENSES NO. OF MONEY


PIECES EARNED
10 boxes of perfume for 10 boxes with a P1,500.00 each
P12,000.00 each dozen of perfume perfume bottle
each

(10) x (12, 000) (10) x (12) (120) x (1,500)


= 120,000 = 120 = 180, 000

Total Cost: Total of 120 pieces of Total money earned:


P120,000.00 perfume bottles P180,000
Profit = (Total money earned) - (Expenses)
Profit = 180,000 - 120,000
= 60,000

The profit of Mr. Rodrigo is P60,000.00


• How much profit does Rodrigo earn?
• Is it good to engage in a business like Rodrigo's?
Yes or No?
• What do you think of Rodrigo's business? Is it
good for a beginner?
PROJECT 1
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consectetur adipiscing elit.
Donec volutpat justo at dolor
venenatis consectetur. Duis
porta elementum metus, sit
amet ultrices lectus.
PROJECT 1
Lorem ipsum dolor sit amet,
consectetur adipiscing elit.
Donec volutpat justo at dolor
venenatis consectetur. Duis
porta elementum metus, sit
amet ultrices lectus.
PROJECT 2
Lorem ipsum dolor sit
amet, consectetur
adipiscing elit. Donec
volutpat justo at dolor
venenatis consectetur.

Duis porta elementum


metus, sit amet
ultrices lectus.
PROJECT 2
Lorem ipsum dolor sit
amet, consectetur
adipiscing elit. Donec
volutpat justo at dolor
venenatis consectetur.

Duis porta elementum


metus, sit amet
ultrices lectus.
PROJECT 3
Lorem ipsum dolor sit amet,
consectetur adipiscing elit.
Donec volutpat justo at dolor
venenatis consectetur. Duis
porta elementum metus, sit
amet ultrices lectus.
PROJECT 3
Lorem ipsum dolor sit amet,
consectetur adipiscing elit.
Donec volutpat justo at dolor
venenatis consectetur. Duis
porta elementum metus, sit
amet ultrices lectus.
TESTIMONIALS

"Lorem ipsum dolor sit amet, "Lorem ipsum dolor sit amet,
consectetur adipiscing elit. consectetur adipiscing elit.
Donec volutpat justo at dolor Donec volutpat justo at dolor
venenatis consectetur." venenatis consectetur."
-Paucek and Lage- -Borcelle-
TESTIMONIALS

"Lorem ipsum dolor sit amet, "Lorem ipsum dolor sit amet,
consectetur adipiscing elit. consectetur adipiscing elit.
Donec volutpat justo at dolor Donec volutpat justo at dolor
venenatis consectetur." venenatis consectetur."
-Paucek and Lage- -Borcelle-
CONTACT US
123-456-
7890
[email protected]

www.reallygreatsite.com

123 Anywhere Street, Any


City
THANKYOU
By : Ingoude Company

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