Operating Profit
Calculates operating profit and operating profit percentage. Profit is made when revenue exceeds costs. Operating Profit (OP) = Total Revenue - Total Cost. Operating Profit Percentage (OPP) = 100 × (Total Revenue - Total Cost) / Total Revenue.
Operating Profit
Profit is made when revenue exceeds costs.
Operating Profit - OP
can be expressed as:
OP = ΣR - ΣC (1)
where:
- OP = operating profit
- R = project revenue
- C = project cost
Operating Profit Percentage - OPP
can be expressed as:
OPP = 100 × (ΣR - ΣC) / ΣR (2)