Operating Profit

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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

Related Documents

• Income Taxes - Taxable income and income taxes
• Net Income - The accounting measure of a project