How to calculate net profit percentage?
I have an economics test tomorrow, and I need to understand how to calculate the net profit percentage. Can anyone please help me with the steps and formula needed for this calculation? Thank you!
5 Answers
Net profit (before tax) is Sales (revenue) minus cost of sales (gross profit) minus administration costs (net profit). To get the percentage you take the net profit divided by the sales divided by 100.
For example £1000 sales, Costs £600=net profit £400.
£400/£1000/100=40% net profit.
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