Purchase Solution

ways of defining net profit and loss

Not what you're looking for?

Ask Custom Question

I would like to know the logic and various ways of defining net profit and loss include and beyond the calculation.

---
HiTech currently sells the HiTech camera for $1,000, and earns a 22% margin on each unit sold. Additionally, the credit card issuer charges a $5.00 fee on each transaction processed.

Please explain your logic, thoughts, and details on how you derive your answers. Please provide any assumptions and definitions used.

a. What is the net profit to HiTech on the sale of one HiTech camera purchased by credit card?

b. A particular purchaser of a HiTech camera, is unsatisfied with the product. He disputes the purchase of the HiTech camera with his credit card company and issues a chargeback. Now HiTech must refund the purchaser his full purchase price as well as incur a chargeback fee of $25.00. What is the net loss to HiTech when a purchase of a HiTech camera is chargedback?

c. How many additional units of the HiTech camera must be sold in order to cover the loss of one HiTech camera that is chargedback?
---

Attachments
Purchase this Solution

Solution Preview

Hi there,

Here are some info regarding net profit and net loss. Also, see the Excel spreadsheet for the calculations.

Net profit is an accounting term which is commonly used in business. It is equal to the gross revenue for a given time period minus associated expenses.

A common synonym for "net profit" when discussing financial reports (which include a balance sheet and an income statement) is the ...

Purchase this Solution


Free BrainMass Quizzes
Managing the Older Worker

This quiz will let you know some of the basics of dealing with older workers. This is increasingly important for managers and human resource workers as many countries are facing an increase in older people in the workforce

Change and Resistance within Organizations

This quiz intended to help students understand change and resistance in organizations

Cost Concepts: Analyzing Costs in Managerial Accounting

This quiz gives students the opportunity to assess their knowledge of cost concepts used in managerial accounting such as opportunity costs, marginal costs, relevant costs and the benefits and relationships that derive from them.

Introduction to Finance

This quiz test introductory finance topics.

Marketing Research and Forecasting

The following quiz will assess your ability to identify steps in the marketing research process. Understanding this information will provide fundamental knowledge related to marketing research.