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business - Coggle Diagram
business
definitions
fixed cost
costs that stay the same not matter the level of output
variable cost
costs that change based on the level of output
revenue
ammount a business earns from sales
net profit
the profit left after expenses
break even
ammount required to sell before you dont make a loss
average rate of return
average anual return from an investment
gross profit
the profit left after cost of sales
finance
calculations
net profit
gross profit - expenses
gross profit
revenue - cost of sales
net profit margin
net profit / revenue x 100
gross profit margin
gross profit / revenue x 100
retained profit
net profit - tax
profit
revenue - costs
contribution
selling price - cost per unit
revenue
ammount sold x selling price
total cost
fixed costs + variable costs
break even
fixed costs / contribution
average rate of return
average anual return / initial outlay x 100