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The document discusses the calculation of a company's gross revenue using an example of a farmer's rice yield. It outlines the input costs, sales revenue, profit, and net profit margin, emphasizing the importance of profit margins in evaluating product performance. Higher profit margins indicate better financial health for a company.

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Fegy Buhisan
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8 views3 pages

Entrep Computation

The document discusses the calculation of a company's gross revenue using an example of a farmer's rice yield. It outlines the input costs, sales revenue, profit, and net profit margin, emphasizing the importance of profit margins in evaluating product performance. Higher profit margins indicate better financial health for a company.

Uploaded by

Fegy Buhisan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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This equation reveals a company’s gross revenue for a given time period.

ANOTHER EXAMPLE FOR SALES REVENUE:


A farmers had a hectare of rice farm and it yield with 80 sacks of rice. The
input (seeds, fertilizer, labor, others expenses) costs to 20,000.00 pesos. If
he sold all the rice 23.00 pesos/kilo and each sacks have an average of 65
kilos.
How many kilos of rice did the farmer’s yield?
How much the sales revenue?
How much the farmer’s profit?
Compute the net profit margin
Profit margins help establish how well a certain product or service performs, or how
much money it makes for the company. The percentage figure gauges how many
cents the business makes for every peso in sales, while accounting for the costs
involved. Inessence, higher profit margins indicate that a company is doing better
than when their profit margins are lower.

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