The net profit is the money that a business earns after the deduction of the expenses for a period of time.
<h3>How to calculate the net profit?</h3>
Your information is incomplete as the data is missing. Therefore, an overview will be given. In order to calculate the net profit, it's important to know the gross profit.
The formula to calculate the net profit will be:
= Total revenue - Total expenses
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Answer:
Project D
Explanation:
Payback period calculates the amount of time it takes to recover the amount invested in a project.
Pay back period = Cost of project / revenue from project.
For project c, its Pay back period is $30,000 / $5,000 = 6 years
For project d, the Pay back period is $120,000 / $50,000 = 2.4 years
The project with the shorter Pay back period is better
I hope my answer helps you
The company should accept the special order because it will get an additional profit of $4,000 ($12,500 - $7,500 - $1,000) for the special order. This additional profit amount can be acquired by separating the effect from the special order on each cost and sales of the company's business. The sales should increase by $12,500 ($5 x 2500 unit) amount if the job is taken and the variable cost should increase by $7,500 ($3 x 2500 unit). Lastly, the fixed cost should increase by $1,000 (the new machine).