Describe how net profit of a business is calculated?​

u must work out the total cost and variable cost and add them up, then you must count all your sales and figure out ur revenue. then u do ur total revenue minus ur total costs

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The formula to calculate profit is: Total Revenue - Total Expenses = Profit. Profit is determined by subtracting direct and indirect costs from all sales earned. Direct costs can include purchases like materials and staff wages. Indirect costs are also called overhead costs, like rent and utilities.

For businesses, profit is often calculated by profit margin formula:follow me nice business

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