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Rate of Profit Formula

GoRate of Profit given Profit Per component Formula

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Maximum Profit Rate is the efficiency rate of the product obtained in metal cutting. Check FAQs

MPR = \frac{S - C pr}{t p}

MPR - Maximum Profit Rate?S - Amount Received For Each Component?C_pr - Production Cost of Each Component?t_p - Average Production Time?

Rate of Profit Example

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With units

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Here is how the Rate of Profit equation looks like with Values.

Here is how the Rate of Profit equation looks like with Units.

Here is how the Rate of Profit equation looks like.

8.2508 = \frac{20000 - 15000}{10.1}

8.2508 = \frac{20000 - 15000}{10.1min}

8.2508 = \frac{20000 - 15000}{10.1}

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Rate of Profit Solution

Follow our step by step solution on how to calculate Rate of Profit?

FIRST Step Consider the formula

MPR = \frac{S - C pr}{t p}

Next Step Substitute values of Variables

∴

MPR = \frac{20000 - 15000}{10.1min}

Next Step Convert Units

∴

MPR = \frac{20000 - 15000}{606s}

Next Step Prepare to Evaluate

∴

MPR = \frac{20000 - 15000}{606}

Next Step Evaluate

∴

MPR = 8.25082508250825

LAST Step Rounding Answer

∴

MPR = 8.2508

Rate of Profit Formula Elements

Variables

Maximum Profit Rate

Maximum Profit Rate is the efficiency rate of the product obtained in metal cutting.

Symbol: MPR

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Maximum Profit Rate

Amount Received For Each Component

Amount Received For Each Component is the amount of money the machine shop receives for machining each component.

Symbol: S

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Amount Received For Each Component

Production Cost of Each Component

Production Cost of Each Component is the total amount that it takes to produce a single component from scratch.

Symbol: C_pr

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Production Cost of Each Component

Average Production Time

Average Production Time is the time taken to produce a single component out of a lot of produced batches.

Symbol: t_p

Measurement: TimeUnit: min

Note: Value should be greater than 0.

Formulas to find Average Production Time

Other Formulas to find Maximum Profit Rate

Go Rate of Profit given Profit Per component

MPR = \frac{P}{t p}

Other formulas in Maximum Efficiency category

Go Cost of Production given Profit per Component

C pr = S - P

Go Amount Received by Machine Shop given Profit per Component

S = P + C pr

Go Profit per component produced

P = S - C pr

Go Production Time per component given Profit Rate

t p = \frac{S - C pr}{MPR}

How to Evaluate Rate of Profit?

Rate of Profit evaluator uses Maximum Profit Rate = (Amount Received For Each Component-Production Cost of Each Component)/Average Production Time to evaluate the Maximum Profit Rate, The Rate of Profit is defined as the profit a machine shop makes on producing components per unit time. Maximum Profit Rate is denoted by MPR symbol.

How to evaluate Rate of Profit using this online evaluator? To use this online evaluator for Rate of Profit, enter Amount Received For Each Component (S), Production Cost of Each Component (C_pr) & Average Production Time (t_p) and hit the calculate button.

FAQs on Rate of Profit

What is the formula to find Rate of Profit?

The formula of Rate of Profit is expressed as Maximum Profit Rate = (Amount Received For Each Component-Production Cost of Each Component)/Average Production Time. Here is an example- 8.250825 = (20000-15000)/606.

How to calculate Rate of Profit?

With Amount Received For Each Component (S), Production Cost of Each Component (C_pr) & Average Production Time (t_p) we can find Rate of Profit using the formula - Maximum Profit Rate = (Amount Received For Each Component-Production Cost of Each Component)/Average Production Time.

What are the other ways to Calculate Maximum Profit Rate?

Here are the different ways to Calculate Maximum Profit Rate-

Maximum Profit Rate=Profit Per Component/Average Production Time

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: Unit

Rate of Profit Formula

​GoRate of Profit given Profit Per component Formula

Rate of Profit Example

Rate of Profit Solution

Rate of Profit Formula Elements

Other Formulas to find Maximum Profit Rate

Other formulas in Maximum Efficiency category

How to Evaluate Rate of Profit?

FAQs on Rate of Profit

Variable Name

GoRate of Profit given Profit Per component Formula