formulas

• formula for profit 


  revenue- costs
• formula for sales revenue 


  price x quantity sold
• formula for total costs 


  fixed costs+ variable costs
• formula for gross profit


  sales revenue- variable costs
• formula for net profit


  sales revenue- (fixed costs+ variable costs)
• formula for gross profit margin


  gross profit / sales revenue x 100
• formula for net profit margin


  net profit/ sales revenue x 100
• formula for average rate of return 


  average annual profit/ initial investment x 100
• formula for average annual profit 


  total profit/ number of years
• formula for cost of sales


  variable costs x units sold