Profit

[MetalMonkey]

Even if it is a one off, if you sell it for more than it cost you to produce then you made a profit.

Your profit is a function of the financial gain over your operating costs. If your costs were zero then all of your sale cost is profit which equates to 100 out of 100 i.e 100% of your selling price is profit.

In practice there is no such thing as zero cost, even if you don't charge for your time and materials, there are still sundry costs - electricity, consumables, rent, depreciation on assets, etc. You may choose to write them off and absorb them but they still exist.

 

[daedalusminos]

The problem is that when Mr(s) taxman wants 20% (and the rest) of your 100% you'll be scraping around trying to find all the costs you possibly can.

 

[Justme]

It’s a math equation and when you have 0 in the equation the answer is 0. Percentage profit = 0 / value x100 = 0.

You can have more than 100% profit. If your profit is more than double what you paid for the item then it’s greater than 100%.

Your using % of costs.

How about if you do % of sales price?

The norm for business is % of sales price.

Its also common to do sales price less item cost = gross profit again as a % and or £

Then to use all your other costs against that value to equate to net profit as £ & or as a %

 

[Burdekin]

Your using % of costs.

How about if you do % of sales price?

The norm for business is % of sales price.

Its also common to do sales price less item cost = gross profit again as a % and or £

Then to use all your other costs against that value to equate to net profit as £ & or as a %

No I answered his question based on the information he gave. "f I sell something that has cost me absolutely NOTHING how much PROFIT ( as a percentage ) have I made ?" His purchase price is 0 and his costs could also be 0. Even if there are costs that you take off the sold price value the percentage profit from his purchase price is still 0%.

 

[Farside]

Always remember the Romans Slogan
SPQR
Small Profit, Quick Return.

 

[Craig-SM]

This got confusing quick

item bought £40
consumables to bring to condition for selling £8
postage £5
total costs £53

sales price £110

53/110 = 48% costs as a percentage of sale
therefore 52% is profit

 

[daedalusminos]

This is not a trick question but as someone who has never been in business I am in discussion with a mate and would like to know the following, If I sell something that has cost me absolutely NOTHING how much PROFIT ( as a percentage ) have I made ?

Since you haven't stated how much you sold it for you cannot determine the profit. What you could say is that your profit is 100% of the selling price.

 

[Burdekin]

This got confusing quick

item bought £40
consumables to bring to condition for selling £8
postage £5
total costs £53

sales price £110

53/110 = 48% costs as a percentage of sale
therefore 52% is profit

To keep in line with the original question; guy walks into the pub from watching the footy, they lost so rips off his jersey and gives it to you and walks out, guy at the bar goes I'll give you £10 for that jersey so you take him up on the offer, what was your percentage profit?

 

[Jaeger_S2k]

POR 100%

 

[ajlelectronics]

To keep in line with the original question; guy walks into the pub from watching the footy, they lost so rips off his jersey and gives it to you and walks out, guy at the bar goes I'll give you £10 for that jersey so you take him up on the offer, what was your percentage profit?

All of it, ie 100%.

 

[daedalusminos]

Profit is not the correct term to use with regard percentage... in the case of @Burdekin football shirt (assuming it's not a trick question - in that your costs could be all the beer you've drunk whilst in the pub waiting for the supporter to come in):

Profit = £10
Margin is 100%

 

[Burdekin]

All of it, ie 100%.

Show us the math please how you worked out 100%?

 

[Burdekin]

Profit is not the correct term to use with regard percentage... in the case of @Burdekin football shirt (assuming it's not a trick question - in that your costs could be all the beer you've drunk whilst in the pub waiting for the supporter to come in):

Profit = £10
Margin is 100%

Yes it is. Most companies work on a percentage profit target. If you sell something for more than you got it for then you made a profit.

How do you get beer as a cost in the sale? The taxman would love you, just deducted my annual beer consumption, thought I'd add the crisps I ate as well.

Can you show the math for calculating 100% please?

 

[daedalusminos]

Margin = ((Sales revenue - Costs) / Sales revenue) x 100
= ((10-0)/10) x 100
= 100%

 

[Craig-SM]

To keep in line with the original question; guy walks into the pub from watching the footy, they lost so rips off his jersey and gives it to you and walks out, guy at the bar goes I'll give you £10 for that jersey so you take him up on the offer, what was your percentage profit?

costs = 0%
profit = 100%

 

[Burdekin]

costs = 0%
profit = 100%

Show me the math please. Are you saying any profit is always 100% as that is what folk seem to be saying. Of the profit you made 100% of it is profit, is that what you are saying as opposed to your previous demonstration where you calculated the profit to your costs?

 

[Burdekin]

Margin = ((Sales revenue - Costs) / Sales revenue) x 100
= ((10-0)/10) x 100
= 100%

So if it costs £1. Then the percentage profit is 90%. I wouldn’t want you as my accountant.

 

[Craig-SM]

Show me the math please. Are you saying any profit is always 100% as that is what folk seem to be saying. Of the profit you made 100% of it is profit, is that what you are saying as opposed to your previous demonstration where you calculated the profit to your costs?

you can think of it as the sale is 100% profit until you take the costs out of it. Takeaway the percentage of costs from 100% leaves you with the remaining profit percentage

 

[ajlelectronics]

you can think of it as the sale is 100% profit until you take the costs out of it. Takeaway the percentage of costs from 100% leaves you with the remaining profit percentage

"All of it" = 100%.

 

[Burdekin]

you can think of it as the sale is 100% profit until you take the costs out of it. Takeaway the percentage of costs from 100% leaves you with the remaining profit percentage

Show me the math please as percentage is a simple math calculation taught in primary.