Computation of Gross Profit

Computation of
Gross Profit
Entrepreneurship
Terms to remember:
Profit- is the gross income. The amount of gross profit provides

information to he entrepreneur about revenue earned from sales.
Cost - refers to the purchase price of the product including of the product
including the total outlay required in producing it.
Compute the Gross Profit
In computing for the Gross Profit, we need the following formula:
NET SALES – COST = GROSS PROFIT
In computing for the Gross Profit Rate, we need the following formula:
Example:
Rodrigo is engaged in a buy and sell business of perfumes. He

bought 10 boxes of perfumes. Each box costs 12,000.00 and
contains a dozen of perfume bottles. He is planning to sell one
perfume bottle at P1,500. Find for the gross profit rate of Rodrigo
upon selling all the boxes of perfumes.
Operating Profit Margin
- Is the excess of gross profit from operating expenses
- The operating profit margin is the second level of revenue in the income
statement.
Operating Profit Margin
Formula:
Gross Profit – Operating Expenses = Operating Profit Margin
Formula in getting the Operating Profit Margin Rate:

Example:
With the current situation of Rodrigo, he needed to rent for a place to

display all the perfumes that he bought. The payment of the rent of
Rodrigo is at P 10,000. Find for the Operating Profit Margin and
Operating Profit Margin Rate of Rodrigo.
Net Profit Margin
- The Income statement is the net profit margin & the third level
in the revenue.
Net Profit Margin
Formula in getting the Net Profit Margin:
Operating Profit Margin + Interest Income – Income Tax – Interest Expense = Net Profit
Margin
Formula in getting for the Net Profit Margin Rate:

Net Profit Margin
Rodrigo being a businessman already, needed to pay for an income

tax of P6,500.00 as mandated by the government. Find for
Rodrigo’s Net Profit Margin and Net Profit Margin Rate.
SOLVE!
Annie bought one dozen smartphones for P200,000.00. She sold each unit at a price of
P19,000.00.
With that being said, Annie has also spent at least P6,000 by renting a place to sell these
android phones. Since Annie is a business owner she needed to pay the tax she is entitled to
pay. Upon asking her tax payment is at P3,500.00.
Find for:
1.Gross Profit Rate
2.Operating Margin Rate
3.Net Profit Margin Rate
DIVIDER SLIDE
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TEXT LAYOUT 1
 Lorem ipsum dolor sit amet, consectetuer adipiscing elit.
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sed pulvinar ultricies, purus lectus malesuada libero, sit
amet commodo magna eros quis urna.
 Nunc viverra imperdiet enim. Fusce est. Vivamus a tellus.
 Pellentesque habitant morbi tristique senectus et netus et
malesuada fames ac turpis egestas. Proin pharetra
nonummy pede. Mauris et orci.
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TEXT LAYOUT 2
 Lorem ipsum dolor sit amet, consectetuer adipiscing elit.
Maecenas porttitor congue massa. Fusce posuere, magna
sed pulvinar ultricies, purus lectus malesuada libero, sit
amet commodo magna eros quis urna.
 Pellentesque habitant morbi tristique senectus et netus et
malesuada fames ac turpis egestas. Proin pharetra
nonummy pede. Mauris et orci.
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COMPARISON
Lorem ipsum dolor sit amet, consectetuer adipiscing elit. Maecenas porttitor congue massa.
Fusce posuere, magna sed pulvinar ultricies
Section 1 Title Section 2 Title
 Lorem ipsum dolor sit amet, consectetuer adipiscing  Lorem ipsum dolor sit amet, consectetuer adipiscing
elit. Maecenas porttitor congue massa. Fusce posuere, elit. Maecenas porttitor congue massa. Fusce posuere,
magna sed pulvinar ultricies, purus lectus malesuada magna sed pulvinar ultricies, purus lectus malesuada
libero. libero.
 Nunc viverra imperdiet enim. Fusce est. Vivamus a
 Nunc viverra imperdiet enim. Fusce est. Vivamus a
tellus.
tellus.
 Pellentesque habitant morbi tristique senectus et netus
 Pellentesque habitant morbi tristique senectus et netus et malesuada fames ac turpis egestas.
et malesuada fames ac turpis egestas.
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50000
CHART
SLIDE 40000
30000
Lorem ipsum
dolor sit amet, 20000
consectetuer adipiscing
elit, sed
do eiusmod tempor 10000
incididunt ut labore.
0
20XX 20XX 20XX 20XX 20XX
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TABLE 20XX 20XX 20XX
SLIDE
Category 0 400,000 1,600,000
Category 500,000 4,000,000 16,000,000
Category 75 80 90
Category 5,625,000 48,000,000 216,000,000

Lorem ipsum
Category 0 0 0
dolor sit amet,
consectetuer adipiscing Category 5,625,000 48,000,000 216,000,000
elit, sed Category 1,687,500 9,600,000 21,600,000
do eiusmod tempor Category 562,500 2,400,000 10,800,000
incididunt ut labore.
Category 281,250 2,400,000 4,320,000
Category 7,593,750 52,800,000 187,920,000
17
BIG IMAGE SLIDE
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VIDEO SLIDE
19
THANK
YOU!
Alexander
Martensson
Phone
678-555-0128
Email
martensson@example.com
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Computation of Gross Profit

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Computation of

Profit- is the gross income. The amount of gross profit provides

In computing for the Gross Profit, we need the following formula:

NET SALES – COST = GROSS PROFIT

Rodrigo is engaged in a buy and sell business of perfumes. He

- Is the excess of gross profit from operating expenses

Formula in getting the Operating Profit Margin Rate:

With the current situation of Rodrigo, he needed to rent for a place to

Formula in getting the Net Profit Margin:

Formula in getting for the Net Profit Margin Rate:

Rodrigo being a businessman already, needed to pay for an income

Category 500,000 4,000,000 16,000,000

Category 5,625,000 48,000,000 216,000,000

Category 7,593,750 52,800,000 187,920,000

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