Calculate Profit as a Percentage of Expenses

What is the formula to calculate profit as a percentage of expenses?

Given revenue = $12,000 and expenses = $10,000, find the profit as a percentage of the expenses.

Formula to Calculate Profit as a Percentage of Expenses:

To find the profit as a percentage of expenses, subtract the expenses from the revenue to find the profit. Then, divide the profit by the expenses and multiply by 100 to find the percentage.

Explanation:

To calculate the profit as a percentage of expenses, we first need to determine the profit by subtracting the expenses from the revenue. In this case, the revenue is $12,000 and the expenses are $10,000, so the profit would be $12,000 - $10,000 = $2,000.

Next, to find the profit as a percentage of expenses, we divide the profit by the expenses and multiply by 100.

The formula to calculate profit as a percentage of expenses is:

Profit as a percentage of expenses = (Profit / Expenses) x 100

Substitute the values:

Profit as a percentage of expenses = ($2,000 / $10,000) x 100

Profit as a percentage of expenses = 20%