Free practice · numeric · medium
Practice
Calculate fictional gross profit
A fictional order has 40 units sold at USD 30 each and direct cost of USD 18 per unit. What is gross profit in USD?
Profitability bridge
Trace quantities through revenue, cost, profit, and ratio
- Revenue
- Units × selling price
- Direct cost
- Units × defined direct unit cost
- Gross profit
- Revenue − direct cost
- Margin
- Gross profit ÷ revenue
- Markup
- Gross profit ÷ cost
Margin and markup use the same profit numerator but different denominators. Keeping that bridge visible prevents a plausible but mislabeled percentage.