Profits Entrepreneurs use profits to

Slides:

Advertisements

Similar presentations

The Building Block of Business The Economics of One Unit of Sale

Advertisements

Contemporary Engineering Economics, 4 th edition, © 2007 Estimating Profit from Production Lecture No. 31 Chapter 8 Contemporary Engineering Economics.

Write the percent formula. percent x whole = part Exercise.

Lesson 7.6: Markup and Discount

Starting and Running a Business: Introduction to the Financials Part I.

CHAPTER 3 COST CONTROL What is revenue? (147) The income from sales before expenses.

Presented by: Alvalene G. Rogers, CTE C.E. Murray High School Ch 2, The Building Block of Business The Economics of One Unit of Sale.

Percentages. Percentages are just fractions Percentages are just fractions. They are designed to describe these numbers differently,

REVIEW  Return on Investment is a calculation that is used to determine the relative profitability of a product  Profit / Investment = Return on Investment.

Purchasing Lesson 2. Objectives Explain how purchasing impacts sales and profits List qulities of a good buyer Describe the lifecycle of inventory through.

UNIT E SELLING FASHION 5.03 Perform various mathematical calculations in retail sales.

Markup and Discount NS 1.4 Calculate given percentages of quantities and solve problems involving discounts at sales, interest earned, and tips. Objective:-Students.

PRICING – DETERMINING THE PRICE Wednesday, December 8.

Pricing Math. Lesson Objectives Use the basic formula for calculating a retail price Calculate dollar and percentage markup based on cost Calculate discounted.

2.10 Entrepreneurship I.  A category of expenditure that a business incurs as a result of performing its normal business operations.  Examples include:

Economic Resources. Economic Systems -nations have different economic systems Four Basic Questions -every nation’s economic system must answer four basic.

PRICING MATH CHAPTER 27. Ch 27 Sec 1 – Calculating Prices How a firm’s net profit or loss is related to pricing How to calculate dollar and percentage.

BUSINESS ACCOUNTING. The purpose of accounting is to help you make better financial decisions.

MARKUP. The difference in the amount that a store charges compared to what the store paid How much a store raises the price to make a profit. Markup =

Growing the Bottom Line Evaluating Marketing Outlets… Which to choose and how? Craig Chase, Field Specialist Farm & Ag Business Management.

Costs of Running A Business Marketing/Entrepreneurship.

6 – 3 Adding and Subtracting, And Multiplying a Polynomial Day 2 Objective: Use polynomial operations in real – life problems.

Warm-ups! Every lamb has 4 legs. Every chicken has 2 legs. 1. How many legs do 5 lambs and 20 chickens have? 2. How many legs do 100 lambs and 27 chickens.

Contemporary Engineering Economics, 6 th edition Park Copyright © 2016 by Pearson Education, Inc. All Rights Reserved Estimating Profit from Production.

SB-Lesson 12.1: Markup and Discount Terminology Selling Price - The price retailers charge customers Cost - The price retailers pay to a manufacturer.

MKT-MP-8 Utilize pricing strategies to maximize return and meet customer’s perception of value.

3.10 Business and Economic Applications.

Contribution Margins. Cost-volume-profit Analysis: Calculating Contribution Margin Financial statements are used by managers to help make good business.

SEM Review. A product’s selling price is $30 per unit, and the number of units required to reach the break-event point is 100. Calculate the total.

Fashion Economics Unit Cost – Cost per item Fixed Cost – Expenses that must be paid, regardless of how much is sold (like rent, phone bill, electric bill)

Understanding the Economics of One Unit  One way to analyze profitability is to look at how much profit the business makes every time a customer buys.

Lesson 8.3B: Markup and Discount Change each percent into a decimal  5.5%  10.24%  29% .1%  1%  50%  5%    0.29   0.01.

Implement expense-control strategies

Business Math 1.4 Commissions.

4.03 Solve Related Mathematical Problems

PRICING MATH CHAPTER 27.

Pricing the Menu 7.4.

BUSS1 Formula Profit= Total revenue - Total cost Contribution= Selling price - Variable cost per unit Break-even = fixed cost/ contribution per unit Total.

Standard Cost Systems: A Financial Reporting Perspective Using Microsoft Excel Appendix 10B.

Entrepreneurship Standard 2

TRADING AND PROFIT AND LOSS ACCOUNT: AN INTRODUCTION

Markup and Discount Notes

Making a profit or surplus

Bell Ringer! In your mind, what defines “success” for a business ?

Factors Affecting Profit

Financial Ratios & Break-Even Analysis

Lesson 7.6: Markup and Discount

© 2015 Cengage Learning. All Rights Reserved.

BASIC FIXED & BREAK EVEN FORM

Markup and Discount Calculate given percentages of quantities and solve problems involving discounts at sales, interest earned, and tips. Objective:-Students.

Section Objectives Explain how to carry out a break-even analysis.

Creating Business from Opportunity: The Economics of One Unit

AMIS 310 Foundations of Accounting

LESSON 6-3 Estimating the Inventory

Costs of Production Lesson

INCOME STATEMENT INFORMATION ON A WORK SHEET

Math 5-7: Percent of Change

Implement expense-control strategies

Dirt and Worms COGS Activity

Implement expense-control strategies

Contribution per unit= Selling price – Direct Cost per unit

4.01 Understand financial planning.

INCOME STATEMENT 1. Net Sales 2. Net Purchases

Economic Resources.

Dirt and Worms COGS Activity

What Is a Unit of Sale? A unit of sale is what a customer actually buys from you. It’s also the amount of product (or service) you use to figure your operations.

Bell work Week 28 Cost - The price retailers pay to a manufacturer

Lesson 15-3 Decisions That Affect Net Income

Explain information that can be obtained from financial statements

Presentation transcript:

Profits Entrepreneurs use profits to Pay themselves Expand their business Start other businesses Gross profit is the amount you make after expenses are paid for an item or service

Economics of One Unit of Sale Unit of Sale can be: ❖ One item, such as a shirt ❖ One hour of service time ❖ One customer ❖ A combination of different items expressed as the average sale per customer (minus the average cost of goods sold per customer)

Examples of costs in making a product: Materials Labor (the people involved in making it) Transportation Storage Packaging Design And so much more!!!!

How to calculate gross profit Selling price per unit – cost of good per unit= Gross profit per unit --SALES – COST = PROFIT For example (page 20) Sneaker You sell a sneaker for $15, BUT it costs 12 dollars to make it. How much do you make in profit? $15- $12= $3

How to calculate gross profit, cont. After finding out the gross profit of one unit of sale, to find out the profit of multiple sales, you just MULTIPLY the gross profit of one by the number of items sold. For example: If Little Caesars can make a pizza for $3, then sells one for $5, they make a profit of $2. If they then came here on a Friday and sold 10, they would make $20. $2 X 10 = $20