# CTE Resource Center - Verso - Marketing, Advanced Task 896546710

CTE Resource Center - Verso

Virginia’s CTE Resource Center

Calculate gross and net profit.

Definition

Calculations should include income minus cost of merchandise and operating expenses.

Process/Skill Questions

  • What is the relationship between a businesses' markup and its gross profit?
  • Businesses often discuss their bottom line. What does bottom line mean?
  • What is the difference between gross and net profit?  Which is true profit?
  • What are typical operating expenses?

Related Standards of Learning

Mathematics

A.1

The student will
  1. represent verbal quantitative situations algebraically; and
  2. evaluate algebraic expressions for given replacement values of the variables.

A.4

The student will solve
  1. multistep linear and quadratic equations in one variables algebraically;
  2. quadratic equations in one variables algebraically;
  3. literal equations for a specified variable;
  4. systems of two linear equations in two variables algebraically and graphically; and
  5. practical problems involving equations and systems of equations.

Other Related Standards

National MBAResearch Standards-Business Administration

Analyze cost/profit relationships to guide business decision-making.

 

Manage financial resources to ensure solvency.

 

Understand economic systems to be able to recognize the environments in which businesses function.

 

National MBAResearch Standards-Marketing

Develop a foundational knowledge of pricing to understand its role in marketing.