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camacho vineyards produces wine and sells it by the bottle for $2. the company decides to produce 20,000 bottles, but the wine wins a local award and sales are much greater than expected. if camacho vineyards sells 28,000 bottles, then:

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Camacho vineyards produces wine and sells it by the bottle for $2. The company decides to produce 20,000 bottles, but the wine wins a local award and sales are much greater than expected. If Camacho vineyards sells 28,000 bottles, then Camacho Vineyards will make a profit of $16,000.

Net profit = (Total sell bottle – Produce bottle) x Cost of bottle

               = (28,000 – 20,000) x 2

               = 8,000 x 2

               = $16,000.

In simplistic terms, net profit is the money left over after paying all the costs of an endeavor. In exercise this will get very complex in large organizations. The bookkeeper or accountant should itemize and allocate revenues and charges well to the running scope and context in which the term is implemented. Net earnings are normally calculated per annum, for every economic yr. The gadgets deducted will commonly consist of tax price, financing price (interest rate), and minority interest.  

Likewise, favored inventory dividends could be subtracted too, though they are not a cost. For a vending employer, subtracted prices can be the fee of goods bought, sales reductions, and income returns and allowances. For a product business enterprise, advertising, manufacturing, & design and improvement costs are protected.

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