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McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved.

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Presentation on theme: "McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved."— Presentation transcript:

1

2 McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved.

3 Profit Profit is the reward to a business firm for the risk it undertakes in offering a product for sale. It is also the money left over after a firm’s total expenses are subtracted from its total sales. 2-2

4 What Is Profit? Company A --Materials --Labor --Facilities Needs $5,000,000 In capital Returns 10% Or $500,000 Annual profit Took $5,000,000 and produced $5,500,000..

5 What Is Profit? Company A --Materials --Labor --Facilities Company B --Materials --Labor --Facilities Needs $5,000,000 In capital Returns 12% or $600,000 Took $5,000,000 and produced $600,000 Took $5,000,000 and produced $500,000

6 What Is Profit? Company A --Materials --Labor --Facilities Company B --Materials --Labor --Facilities $5,000,000 Took $5,000,000 and produced $600,000. Cost 600,000 500,000...

7 End of Program.

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