Operating Profit
Profit is made when revenue exceeds costs.
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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
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Income Tax
Income tax vs. taxable income. -
Net Income
Operating profit after tax.
