Fair enough.

So my operating profit is really my profit because I don't have to pay taxes on it.

Minus 50,000.

So I'll do a line here. I'll subtract that from that.

And I'll write it as a negative number because we're going to subtract it from the gross profit.

In order for this to come out to be zero, the gross profit has to be 500,000.

So this is a break even scenario, where I sell 500,000 cupcakes at 2 per cupcake, with this being the cost of goods.

But here you see it means very, very different things.

You might say, oh that's great! You're making a million dollars on your cupcake factory in this scenario, and oh no, we're not done yet.

This is really important to pay attention to, because so many people say, oh, a company made this much.

Just kind of the money I'm getting from selling the cupcakes, and that term is called gross profit.

And at least it'll give you a sense of how revenues, gross profit, operating profit, pre tax income and net income really are different.

One of the viewers pointed out not incorrectly that one definition of return on asset so this whole video's going to be on return on asset that one definition of return on asset, and if you look it up on some of the finance sites or even some finance textbooks, they'll tell you it's net income over total assets.

Our interests clash with theirs.

With trade, there's mutual interdependency and mutual gain between parties.

Probably not. Mr. Darcy can please what he chooses, if he thinks it worth his while.

Relative

And then if you subtract your costs from your revenue, or if you just add these two numbers, because this one is negative, you have your gross profit.

There is no way the United States will ever get involved

We saved Ford 35 million dollars doing it this way, day one, which is the equivalent of the Ford Taurus at a four percent margin of an order for 900 million dollars worth of cars.

And I think you already get the sense that the lower the

The company earned 300 million on sales of 4,000 million.

It is a better business model.

Mom and pop stores will turn a profit in the new fiscal year.

I mean, how big is the group overall?

Have a look at the gap.

And it has been a powerful marketplace differentiator, increasing sales and profits.

I made a good profit by selling my car.

Well, John, that that's all relative.

Company A made 1 per share. 1 of EPS.

I do want to leave you with one positive thought.

The swine flu virus, at the moment, is a symmetrical object.

So, what brands can do, and companies, is pay dividends to consumers, be a brand that lasts, offer transparency, promise you're going to be there beyond today's sale.

We have this principal that we don't touch that produces returns, social, economic and ecological.

So now if you do a Price to Earnings on 2010 earnings so this is 18 months out from when this video is being made all of a sudden, your Price to Earnings relative to 2010 earnings is 4 for Company A.

But you married him.

Now this is the major change that I've seen how teaching English has morphed from being a mutually beneficial practice to becoming a massive international business that it is today.

And when they produce their crops, they sell the surplus on marketplaces.

I'm not interested in material gains.

There is no doubt about what they have done.

I made a good profit by selling my car.

So, you're selling costs were embedded here, this was the commission or direct sales costs or whatever you were paying your direct sales people and you made 37 selling directly.

But when you lower the Price to Earnings you are increasing the Earnings to Price.

The tickets cost 29 each.

This is a pretty profitable business, more profitable than most.