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Company expected profit for year

Company expected profit for year

The company's expected profit for the year was £252000. The company actually made a loss for the year of £20000. What is the percentage of loss against the expected profit. Howe do you work it out.
P.Murphy

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06th Feb 2001 15:28

Budget Profit; Actual Loss
Who will do the budgeting for next year ???

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By neileg
06th Feb 2001 10:53

A kind of answer
Tourist to Irish Farmer: Excuse me, is this the right road to Dublin?
Farmer to tourist: Sure, if I was going to Dublin, I wouldn't start from here

Why do you need to express a loss as a percentage of a profit? Whatever calculation you come up with will only have a resitricted validity.

That aside, when we do budget comparisons (variance analysis) we calculate the percentage of the absolute value, and then change the sign. Thus:
(20,000/252,000)*-1= -7.9%
I don't claim that this gives a meaningful measure of anything in particular.

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