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Maximum Profit Calculator

Maximum Profit Calculator

Price of good at maximum demand ($):

Total Quantity of good at maximum demand:

Cost of Good at maximum ($):

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This online maximum profit calculator helps you in finding maximum profit and revenue generated on a particular sale. You can estimate the percent growth of your business or company by using this maximize revenue calculator.

Let us discuss the proper procedure of calculating revenues that you need to generate to run a successful business.

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What Is Revenue And Profit?

In the context of business finance management:

“The total amount that a certain sale of goods can create as a whole is called revenue”

Whereas;

“Profit is the net amount that is left after bearing all the expenses”

For example:

Henry purchased 30 laptops for almost $30,000. Now he wants to sell them at a good price. He fixes the selling price of all the laptops as $37,500. After the sale of all units, the total revenue generated will be $37,500 and the profit will be $7,500.

Point To Ponder!

A revenue can be generated without considering the profit income. But you can never estimate the profit value until you obtain the total revenue. The maximum profit calculator helps you in this regard. You can immediately calculate both revenue and profit by using it which makes you capable of managing your expenses and earning high profits.

Maximum Revenue Formula:

The basic revenue function equation that is used to find the maximum profit and revenue is as under:

$$ R = P*Q $$

Where:

R = Maximum Revenue
P = Price of products at maximum
Q = Total quantity of items offered at maximum demand

Here the free revenue function calculator makes use of this expression to estimate the margin of profits earned from the sale of goods.

Maximum Profit Formula:

The following equation is used to calculate the maximum profit earned after you make sales:

$$ \text{Maximum Profit} = \text{Maximum Revenue} – \text{Purchase Price} $$

How To Find Maximum Revenue And Profit?

Here we will be solving a couple of examples to find the value of the maximum profit and revenue. Stay in touch!

Example # 01:

200 mobile phones are purchased at the cost rate of $140 per unit. How to calculate maximum profit when the price of all mobile phones is set at the maximum of $156 per each unit?

Solution:

As the price of one mobile phone is $156. So we have:

$$ \text{ Purchase price} = 200 * $140 $$

$$ \text{Purchase Price} = $28,000 $$

Finding maximum revenue:

$$ R = P*Q $$

$$ R = $156 * 200 $$

$$ R = $31,200 $$

Finding maximum profit:

$$ \text{Maximum Profit} = \text{Maximum Revenue} – \text{Purchase Price} $$

$$ \text{Maximum Profit} = $31,200 – $28,000 $$

$$ \text{Maximum Profit} = $3,200 $$

The maximum revenue calculator also displays the same results but in a short time span to keep your projects run smoothly.

How Maximum Profit Calculator Works?

This total revenue calculator uses a combination of your maximum price demanded and quantity of products to generate results. Let’s find how!

Input:

  • Enter The price of goods at maximum demand
  • Now, enter the total number of goods at maximum demand
  • Finally, enter the cost of goods at maximum
  • After doing so, tap the calculate button

Output:

The free maximize profit calculator calculates:

  • Maximum revenue generated after complete sales
  • Maximum profit earned after bearing all the expenses

FAQ’s:

What are some main types of the revenues?

The main types of the profit includes the following:

  • Operating Revenue
  • Non-Operating Revenue
  • Gross Revenue
  • Net Revenue
  • Deferred Revenue
  • Accrued Revenue
  • Cost-Recovery Method
  • Installment Method

Is cash a revenue?

Yes, a revenue can either be cash or any other sort of payment that a company receives after making sales of its goods.

What are debits in a revenue?

In revenue accounts, debits are actually the payments that are related to discounts and are further related to the sales made by a company. In a revenue account, the debits cause a decrease in the profits of the company due to deviation in the number of sales.

What Is the difference among cash and revenue?

A cash is actually the flow of the money to and from a company’s account. On the other hand, revenue refers to the margin earned by making a handsome deal with the buyers regarding sales and can be exactly determined by using maximum profit calculator.

Why is revenue not an asset?

A revenue is always recorded on the income statement for accounting purposes. Companies spend revenues to purchase an asset. This is why revenue can not be considered as an asset itself.

What is revenue positive?

In the same year, the revenue positive means all the state taxes that are made by the business are larger than the debt services paid on the state bonds. These debts are paid by the General Fund.

What do you mean by the tax revenue?

Taxes are the revenues that are collected on incomes or purchases by the Government of the state. The most common types of tax include wealth tax, income tax, property tax and corporation tax.

Conclusion:

Profits play a significant role in the development of a business or any company. The overall financial background of any company provides the reason to investors to make huge investments with your company due to high profit earnings. If you are also a businessman, then it is compulsory for you to make use of an online maximum profit calculator. It will assist you to keep an eye on your business’s productivity.

References:

From the source of Wikipedia: Profit margin, Profit percentage, Net income, Gross income

From the source of Investopedia:  Net Profit Margin, Net Margin vs. Gross Profit Margin, Limitations