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    hi guys, you know if we get a question in the exam asking me for the gross profit? i know the proper equation is 'gross/revenue x100’ but could get the same marks if i put: ‘revenue -variable costs’? as long as i got the correct answer?
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    Good luck to everyone tomorrow do well :P
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    (Original post by deano321)
    hi guys, you know if we get a question in the exam asking me for the gross profit? i know the proper equation is 'gross/revenue x100’ but could get the same marks if i put: ‘revenue -variable costs’? as long as i got the correct answer?
    as long as you put your working out with the correct answer, then that is fine, there are more than one formulas for profit etc
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    any tips on the multiple choice ones? im so bad at them!
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    (Original post by Jamesd678)
    as long as you put your working out with the correct answer, then that is fine, there are more than one formulas for profit etc
    The other formula can be this right?

    operating profit = total revenue - total costs
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    (Original post by rohan taneja)
    The other formula can be this right?

    operating profit = total revenue - total costs
    No, gross profit is profit before deductions such as fixed costs. Gross profit looks at the the profit just from the goods sold and the money that has gone into them, such as variable costs.

    So it would be Revenue - variable costs.
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    Thank you so much for clearing it up for me
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    (Original post by rohan taneja)
    Thank you so much for clearing it up for me
    no problem, good luck
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    does anybody have a list of formulas needed WOULD BE MUCH APPRECIATED!
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    (Original post by Jamesd678)
    No, gross profit is profit before deductions such as fixed costs. Gross profit looks at the the profit just from the goods sold and the money that has gone into them, such as variable costs.

    So it would be Revenue - variable costs.
    whats the difference between the formula for gross profit and operating profit
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    (Original post by Yousf)
    whats the difference between the formula for gross profit and operating profit
    Operating profit is basically your profits after you minus all your costs ( fixed + variable)

    its also know as your net profit

    if it asks you too work the operating profit the formula is simple:

    total revenue - total costs (fixed + variable)

    so in other words total revenue - total costs - operating profit is also called a net profit - if you think of it as profit that the company can use to expand and grow and the money they run on .

    if it asks for operating profit margin - it refers to the % profit your business is making - too work this out:

    net profit(operating) / total revenue or turnover x 100

    Gross profit is basically your total revenue minus only your variable costs which are the same as cost of sales .

    formula is - total revenue - variable costs

    gross profit margin is - gross profit / total revenue x 100

    Hope that clears it all up for you - best of luck !

    this for me is the easiest part of the course.
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    (Original post by Britishsunset)
    Yes did exam last year ; 1 knowledge ( define.)

    ( Application with anaylsis - so 1 advantage include app in this.)

    One evaulation- include app

    - what you thinks final parageraph


    12marks
    ok i understand - but i get really confused with evaluation .

    i usually for 8 marks:
    2 marks - knowledge
    2 marks - application ( so linking what they ask for into the case study)
    2 marks - explaining one advantage of what they are doing on the business
    2 marks - evaluation - from what i understood is that your meant to give disadvantage of what you gave in analysis.

    i dont understand how to get 8th marks.

    also for 12 marks:
    1 mark defn - but when they ask you too look at 2 diff concepts then their usualy 2 marks.

    i dont understand rest of mark schme but i usually link it and put it in context and then explain one advantage for each concept . but i struggle on evaluation like i said before.
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    (Original post by ahsan_ijaz)
    Operating profit is basically your profits after you minus all your costs ( fixed + variable)

    its also know as your net profit

    if it asks you too work the operating profit the formula is simple:

    total revenue - total costs (fixed + variable)

    so in other words total revenue - total costs - operating profit is also called a net profit - if you think of it as profit that the company can use to expand and grow and the money they run on .

    if it asks for operating profit margin - it refers to the % profit your business is making - too work this out:

    net profit(operating) / total revenue or turnover x 100

    Gross profit is basically your total revenue minus only your variable costs which are the same as cost of sales .

    formula is - total revenue - variable costs

    gross profit margin is - gross profit / total revenue x 100

    Hope that clears it all up for you - best of luck !

    this for me is the easiest part of the course.
    Do you know what the formula for break even is?
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    (Original post by yousf)
    do you know what the formula for break even is?

    be = fixed cost / contribution (p-vc)
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    (Original post by Yousf)
    Do you know what the formula for break even is?
    Break even= fixed costs / contribution (selling price- variable costs)

    a common question is usually to work out break-even - in which case you literally insert the numbers - but their have been questions requiring you too re arrange so like it might give you the BE and fixed costs and ask you to work out the average variable costs.
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    [QUOTE=ahsan_ijaz;55887451]ok i understand - but i get really confused with evaluation .

    i usually for 8 marks:
    2 marks - knowledge
    2 marks - application ( so linking what they ask for into the case study)
    2 marks - explaining one advantage of what they are doing on the business
    2 marks - evaluation - from what i understood is that your meant to give disadvantage of what you gave in analysis.

    i dont understand how to get 8th marks.

    also for 12 marks:
    1 mark defn - but when they ask you too look at 2 diff concepts then their usualy 2 marks.

    for the 12 marker its usually splits into 2 6 markers so know 1 apllication 1 anaylsis 2 and evl 2

    For the 8 marks you have to right a disadvange to gain the 2 evaultion marks - like the analysis you say why it's a disadvantage put it into context and then write a concluding sentence.
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    [QUOTE=Britishsunset;55890717]
    (Original post by ahsan_ijaz)
    ok i understand - but i get really confused with evaluation .

    i usually for 8 marks:
    2 marks - knowledge
    2 marks - application ( so linking what they ask for into the case study)
    2 marks - explaining one advantage of what they are doing on the business
    2 marks - evaluation - from what i understood is that your meant to give disadvantage of what you gave in analysis.

    i dont understand how to get 8th marks.

    also for 12 marks:
    1 mark defn - but when they ask you too look at 2 diff concepts then their usualy 2 marks.

    for the 12 marker its usually splits into 2 6 markers so know 1 apllication 1 anaylsis 2 and evl 2

    For the 8 marks you have to right a disadvange to gain the 2 evaultion marks - like the analysis you say why it's a disadvantage put it into context and then write a concluding sentence.

    in analysis wouldn't you just put one advantage in context explained and then in evaluation - say why its bad and expain?
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    any one here can tell me abt sum revesion online??
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    Could anyone post a list of all the different formulas simple and complex?
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    (Original post by ducksaus)
    any tips on the multiple choice ones? im so bad at them!
    Just follow this for every MP Question

    -Choose correct answer (usually obvious if you've learnt the theory)
    -Start paragraph with a definition of a business term that's in the question
    -Explain exactly why your selected answer is correct
    -Explain why two of the other answers are incorrect.

    Do that, and you can't go wrong! Also aim to complete each question in no more than 4 minutes. Otherwise you wont have enough time for Section B.
 
 
 
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