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Operating Profit

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If a project revenue exceeds project cost - it generates profit (or income).

Operating Profit - OP

can be expressed as

OP = Σ R - Σ C         (1)

where

OP = operating profit

R = project revenue

C = project cost

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 economics - cash flow diagrams, present value, discount rates, internal rates of return - IRR, income taxes, inflation.

Related Documents

Income Tax

Income tax vs. taxable income.

Net Income

Operating profit after tax.

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