Therefore, the net revenue formula should be calculated for each product or service, ... Revenue is often used to measure the total amount of sales a company makes from its goods and services.

An example of how total cost will impact the distribution and magnitude of the profit will be described in the paragraphs below. The total cost (TC) function that EEPGL employs is specified as: TC ...

Once you've calculated the net income (profit), simply divide this amount by the total revenue. To convert it to a percentage, multiply by 100. Net profit margin = (Net income / Total revenue) × 100.

Calculating profit as a percentage of revenue shows relative profitability, like Apple's 30.5% vs Fitbit's 20.5%. Common size income statements allow comparisons across companies and time by ...