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Question by  xenobia (36)

# How do you perform a profit analysis?

 +1 vote! +7 you voted Answer by  richmiller3214 (138) A profit analysis would include the distinction between the cost of goods sold and expenses in order to determine a gross profit and net income and cost percentage of sales.

 +1 vote! +7 you voted Answer by  cupper3 (21) Determine all sources of revenue associated with the item or service, ensuring all sources of costs including labor and materials are identified, plus any outside sub-contracting that may have occurred.

 +1 vote! +6 you voted Answer by  richmiller3214 (138) A profit analysis can be done by measuring sales and revenues to cost of goods sold and expenses. It can also be measured by determining the percentage of net income to gross income.

 +1 vote! +6 you voted Answer by  Kattie (598) You need to know the cost per unit for your product including production costs (labor). Calculate the cost per unit and multiply it by the number of units.

 +1 vote! +5 you voted Answer by  John1988 (5) This the amount of money you make depending units sold. Break even analysis formula: (Units Sold * Price per Unit) - (Units Sold * Cost per Unit) - Fixed Cost.

 +1 vote! +5 you voted Answer by  Tranwreck (279) Profit analysis is performed by finding the total profit for a given period. This is calculated by totaling all the expenses and subtracting them from the gross revenues for the period. Further analysis can include number of required units sold to break even, and can include projections of profits too.