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Operating Profit
Generated profit or income
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If a project revenues exceeds projects cost - it has generated profit (or income).
Operating Profit - OP
can be expressed as
OP = Σ R - Σ C (1)
where
OP = operating profit
R = project revenues
C = project costs
Operating Profit Percentage - OPP
can be expressed as
OP = 100 (Σ R - Σ C)/ Σ R (2)
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Related Topics
- Economics - Engineering economic concepts - cash flow diagrams, discount rate, internal rate of return - IRR, income taxes, inflation
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Related Documents
- Income Taxes - Taxable income and income taxes
- Net Income - The accounting measure of a project





