Enter the final revenue ($), the final costs ($), the initial revenue ($), and initial costs ($) into the calculator to determine the Increase in Profit.

## Increase in Profit Formula

The following formula is used to calculate the Increase in Profit.

IOP = (FR-FC) – (IR-IC)

• Where IOP is the Increase in Profit ($) • FR is the final revenue ($)
• FC is the final costs ($) • IR is the initial revenue ($)
• IC is the initial costs ($) ## How to Calculate Increase in Profit? The following example problems outline how to calculate Increase in Profit. Example Problem #1 1. First, determine the final revenue ($). In this example, the final revenue ($) is given as 100 . 2. Next, determine the final costs ($). For this problem, the final costs ($) is given as 20 . 3. Next, determine the initial revenue ($). In this case, the initial revenue ($) is found to be 30. 4. Next, determine the initial costs ($). These are found to be 10.
5. Finally, calculate the Increase in Profit using the formula above:

IOP = (FR-FC) – (IR-IC)

Inserting the values from above yields:

IOP = (100-20) – (30-10) = 60 ($) Example Problem #2 The variables needed for this problem are provided below: final revenue ($) = 400

final costs ($) = 50 initial revenue ($) = 300

initial costs ($) = 50 Entering these values and solving gives: IOP = (400-50) – (300-50) = 100 ($)