Economics and Global Business

This measures the relationship between net profits and sales of a firm. The net profit margin is indicative of management’s ability to operate the business with sufficient success not only to recover revenues of the period, the cost of merchandise or services, the expenses of operating the business and the cost of the borrowed funds, but also leave a margin of reasonable

Next there is total cost and total revenue. Total cost is what the company spends to produce a certain quantity of its product. This includes the cost of all the materials,

The source of revenue comes from net income, which comes from a sale of goods or services in

know what it is exactly, in order to assess the extent to which the accounting profit reflects

According to Investopedia, “Full costing is an accounting method used to determine the complete end-to-end cost of producing products or services.” Full costing is also called "full costs" or "absorption costing."

Marginal cost is the additional cost the you incur while producing an additional unit. To put this into context, it makes cost a certain amount to produce a car, but in order to keep making money you have to produce more than one car. Marginal cost asks the question how much would it cost to produce the second car. According to Chron the marginal cost for the first few units will unfortunately be much high, but will decrease as you produce more and more

The results of the calculations of changes show that total revenues incremented by 19.2 percent. Because total revenues increased, total cost of revenues also increased, but the cost of revenues went up by 25.3% which is more than the rise in total revenues. However, gross profit also went up by 15% which is a fair percentage given that the cost of revenues rose more than the revenue. Moreover, the total costs and expenses went up by 19.2% and total income from operations increased by just a 9.5%. On the other hand, interest and other income decreased by 15.3 percent, but when seen as a dollar amount it was only $96, which is not an elevated amount. Finally, there was a 12.2% decline in taxes and a 13.2% increase in net income from continuing

Projected revenue and expenses are presented on a profit center basis. There are two profit

To use the marginal decision rule in profit maximization, the firm produces the output at which marginal cost equals marginal revenue. Economic profit per unit is price minus average total cost; total economic profit equals economic profit per unit multiplied by the quantity.

According to Buitelaar (2004), this involves the cost of accessing to market information that would reduce uncertainty. Information such as prices, quality, research into residential preferential, comparison of brands and different suppliers incurred money, time and effort. Generally, any cost of production would include production and transaction costs, whereas the latter include cost of acquiring information and institutional costs (Buitelaar, 2004).

The marginal revenue is considered to be the additional revenue generated from hiring the additional salesperson. To get the marginal revenue, the total revenue is differentiated to get the marginal revenue function. Marginal revenue is the additional revenue generated from increasing products. In order to get the revenue, we consider the variables which affect the sales revenue such as the size of the sales force, changes in the income and changes in price. (Drury, 2013).

For every $1 in sales, 77.5 cents of net income is generated. This rest is 22.5 cents in expenses. I am profitable because for every $1 my company made, 77.5 cents was my income. This means that my company gets to keep 77.5 cents for every $1 made in sales. My income is high, indicating that enough revenue is being generated from the costs of running my business. An area of strength based on my revenues and expenses is that most of my revenue is being generated from GO revenue. This means that money coming into the business is my salary that I am earning. Another area of strength is that my other highest source of

A common misconception made by management of a company is that a single definition of cost is ideally suited to all types of manufacturing decision. What a manager’s plan to produce must be well known to him and always taken into account where he fails to realize this, difficulty arises in determining the cost of production. This gives rise to two reasons for the difficulty in determining the cost of products produced. First, the relationship between the cost incurred and output produced is often difficult establish. Secondly, cost may be assembled, combined and reported in different ways.

“Marginal cost is the total cost you incur to produce one more unit” (Urban Economics, 8E). Following the example from the previous paragraph, it is the cost to make one more widget. Since, marginal costs are

Marginal Revenue (MR) is the adjustment altogether income because of a unit change in amount. So also Marginal cost (MC) is the additional cost of producing a unit. These two ideas are extremely helpful in ideal designation of assets.