2.3.1 Profit

• Gross Profit Margin


  GP/SR * 100
• Operating Profit Margin

  OP/SR *100
• Net Profit Margin


  NP/SR * 100
• Gross Profit

  Sales revenue - variable/ direct cost
• Operating Profit

  Gross profit - fixed overheads/costs
• Net Profit

  Operating Profit - financing and taxes
• Ways to Increase Revenue

  Increasing promotions, change marketing mix, better distribution
• Ways to Reduce Costs

  Delayering, switching suppliers and reducing waste