Information about Turnover And Profit

Published on September 21, 2008

Author: amasters

Source: slideshare.net

Turnover/Sales Revenue

Is the value of coming into the company.

We measure this by multiplying the of the product by the of units sold.

Turnover and Profit So, if a company sells computers at £800 each and sells 10 in a week their turnover is £8000 for that week. If he sells 10 computers every week for one year his turnover for the year is £41,600 (£8000 x 52)

So, if a company sells computers at £800 each and sells 10 in a week their turnover is £8000 for that week.

If he sells 10 computers every week for one year his turnover for the year is £41,600

(£8000 x 52)

Task Complete section one on your worksheet

Complete section one on your worksheet

Extra Tasks 1: If a clothes shop has a turnover of £15,000 in the first week of January, why will simply multiplying this by 52 not give an accurate figure for the year? 2: If a shop has an annual turnover of £120,000, and they sold 40,000 products all at the same price, how much did each product cost?

1: If a clothes shop has a turnover of £15,000 in the first week of January, why will simply multiplying this by 52 not give an accurate figure for the year?

2: If a shop has an annual turnover of £120,000, and they sold 40,000 products all at the same price, how much did each product cost?

Profit Total profit is measured by taking away all of a firm’s from its PROFIT = TURNOVER - COSTS costs turnover

Total profit is measured by taking away all of a firm’s from its

Why is Profit Important? Profit is often used as a measure of a company’s Higher profits make it easier for firms to If the profit falls, the prices of may also fall. Firms that make a loss will eventually go out of success . expand . shares business .

Profit is often used as a measure of a company’s

Higher profits make it easier for firms to

If the profit falls, the prices of may also fall.

Firms that make a loss will eventually go out of

Task Complete section Two on your worksheet

Complete section Two on your worksheet

Extra Tasks Explain exactly how the following changes would affect profit: A firm in a highly competitive industry increases its prices by 8% Demand for a firm’s products fall sharply due to changing fashions. New production methods increase a firm’s factory reject rate.

Explain exactly how the following changes would affect profit:

A firm in a highly competitive industry increases its prices by 8%

Demand for a firm’s products fall sharply due to changing fashions.

New production methods increase a firm’s factory reject rate.

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