Term
When the Mark-Up % declines so does the
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Definition
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Term
When the Gross Profit % goes down
what else usually goes down
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Definition
The Mark Up % - you are a star!!!
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I am going to throw my toys out of the cot! |
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Term
If Tamati Toys has a mark up of 100% - what does this tell us?
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Definition
Tamati Toys adds 100% to the cost of the product to get the selling price. Thus if the cost was $1.50 then the selling price would be $3.00, ie the selling price is double the cost price.
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Term
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If Scrooge McDuck tells you his Gross Profit % is 40% - how much gross profit is he making on each dollar of Sales? |
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Definition
Scrooge McDuck is making
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40 cents gross profit in every dollar of sales that he earns. This is before all the other operating expenses are deducted and other income is added. |
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Term
If Jessica's Chocolat has a Gross Profit % of 60% what does this tell us?
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Definition
That for every $1 of sales that Jessica's Chocolat makes, 60 cents of that $1.00 is the Gross Profit.
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Term
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What are the profitability percentages? |
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Definition
The ...
1. Mark Up %
2. The Gross Profit %
3. Expense % to Sales
4. Net Profit %
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Term
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Definition
Current Assets - Current Liabilities |
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Term
What are the
two
measures of Liquidity? |
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Definition
The Current Ratio
Current Assets
Current Liabilities |
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