3.3 Part II Understanding Profit

Which of the following refers to the TOTAL AMOUNT of money that a retailer brings in?

• Profit

• Revenue

• Cost of goods sold

• Operating Costs

Which of the following refers to the amount of money that a retailer makes after accounting for expenses?

• Profit

• Revenue

• Cost of goods sold

• Operating Costs

Which of the following refers to the difference between revenue and cost of goods sold?

• Net Profit

• Gross Profit

• Profit Margin

• Profit Margin Percentage

Which of the following refers to the difference between revenue and all expenses, including the cost of goods sold and operating expenses?

• Net Profit

• Gross Profit

• Profit Margin

• Profit Margin Percentage

What is the term for reducing the price of an item in order to encourage sales?

• Net Profit

• Margin

• Markup

• Markdown

If a business' revenue is $1,150 and its cost of goods sold is $734, what is the business' gross profit?

• $1,884

• $516

• $416

• there is not enough information to calculate this

If a business' gross profit is $100 and its revenue is $500, what is the business' profit margin percentage?

• 20%

• 100%

• 25%

• there is not enough information to calculate this