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12 questions from this quiz
How much profit is generated from sales
(Gross profit ÷ Sales revenue) × 100
40p becomes gross profit
Direct production costs only
Comparing profitability of products
(Net profit ÷ Sales revenue) × 100
Direct costs & operating expenses
8p becomes net profit
NPM is generally lower than GPM
Investment opportunities
(Avg annual profit ÷ Investment cost)×100
33.3%
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