1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Anvisha [2.4K]
3 years ago
6

Why is gross profit more important than net profit

Business
1 answer:
kozerog [31]3 years ago
4 0
Gross profit shows how much money you made in relation to the cost of goods sold, this calculation is very important when you need to know wether a product is profitable or not. Net profit also substracts the expenses (building machinery,etc).
You might be interested in
Janes, Inc., is considering the purchase of a machine that would cost $410,000 and would last for 5 years, at the end of which,
ki77a [65]

Answer:

- $33,678.21

Explanation:

Cash flow Summary of the Project will be as follows

Year 0 = $410,000 + $3,000 = - $413,000

Year 1 = $101,000

Year 2 = $101,000

Year 3 = $101,000

Year 4 = $101,000

Year 5 = $101,000 + $41,000 + 3,000 =  $145,000

So the Net Present Value can now be calculated using the CFj function of a Financial calculator as follows :

- $413,000 CF 0

  $101,000 CF 1

  $101,000 CF 2

  $101,000 CF 3

  $101,000 CF 4

 $145,000 CF 5

i/yr = 13%

Shift NPV = - $33,678.21

5 0
3 years ago
A retail store credited the sales revenue account for the sales price and the amount of sales tax on sales. if the sales tax rat
alexira [117]
We have to calculate the amount of the sales taxes owed to a taxing agency.
The tax rate is 5% ( 0.05 ) and the balance in the sales revenue account amounted to $294,000.
$294,000 * 0.05 = $14,700
Answer:
Amount of the sales taxes is B ) $14,700.
8 0
3 years ago
A commitment whereby the underwriter agrees to purchase any portion of an issue offered to existing shareholders under a rights
bekas [8.4K]

A commitment whereby the underwriter agrees to purchase any portion of an issue offered to existing shareholders under a rights offering that is left unsubscribed is known as a stand-by commitment.

Commitment means the consent of the backstop parties under the Backstop Rights Purchase Agreement, and purchases of all rights offering shares that exceed the Sopris Senior Note Commitment that the rights offering participants do not purchase in accordance with the rights offering.

Commitment: With firm commitment underwriting, the underwriter guarantees that the issuer will purchase all securities for sale, regardless of whether they can be sold to the investor. This is the most desirable arrangement as it immediately guarantees all the money of the issuer.

Commitment usually refers to the insurer's agreement to assume all inventory risk. A firm commitment also means agreeing to buy and sell all IPO securities directly from the issuer. Other uses of commitments relate to loans and derivatives.

Learn more about commitment here: brainly.com/question/472211

#SPJ4

6 0
2 years ago
What amount would the insurance company pay for vandalism that does $425 of damage to a home if the insured homeowner has a $500
iren [92.7K]

ZERO amount would the insurance company pay for vandalism that does $425 of damage to a home if the insured homeowner has a $500 deductible.

( Because the deductible exceeds the loss or the damage. The loss is $425 and the deductible is $ 500, so here the deductible exceeds the loss hence the insurance company will not pay anything).

People like you pay premiums to insurance companies to cover potential losses related to their property. Insurance companies receive these premiums and aggregate them into money pools. These funds are available to cover losses incurred by pool members.

When you report a car accident to the insurance company, the insurance company will send an adjuster to assess the damage. The expert's first task is to decide whether to classify the vehicle as a total loss. Assuming the vehicle is a total loss, the expert performs a valuation and assigns a value to the vehicle.

Learn more about vandalism at

brainly.com/question/13646632

#SPJ4

5 0
2 years ago
Cool Gelato uses various sizes of foam cups. The use of 8oz foam cups is constant throughout the year, and Cool Gelato expects t
ruslelena [56]

Answer

The answer and procedures of the exercise are attached in the following archives.

Step-by-step explanation:

You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.  

5 0
3 years ago
Other questions:
  • Builders Inc., Real Estate Broker, Inc., and Developers, Inc. form a business to purchase, develop, and build a shopping mall in
    10·1 answer
  • Diego owns and operates a small business with only four full-time employees and less than $700,000 in annual sales. He currently
    7·1 answer
  • Creating policies for health and safety is part of which risk management strategy? A.) Avoiding risk B.) Sharing risk C.) Accept
    11·1 answer
  • Why do people feel more compelled to work with a leader who demonstrates responsibility
    15·1 answer
  • Balsco's balance sheet shows total assets of $238,000 and total liabilities of $107,000. The firm has 55,000 shares of stock out
    10·1 answer
  • Definition of economic costs
    11·1 answer
  • Blue Spruce Manufacturing has an annual capacity of 80,200 units per year. Currently, the company is making and selling 78,000 u
    13·1 answer
  • Edgar Co. determines from a physical inventory count taken on the last day of fiscal 20X7 that its LIFO-basis inventory of widge
    14·1 answer
  • Which of the following items are normally classified as current liabilities for a company that has a one-year operating cycle? (
    15·1 answer
  • Personalized products is a small manufacturing firm specializing in custom-order tool and die work. a computerized accounting sy
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!