Gross Profit/Net Sales = Gross Profit Margin.
Gross Profit = Sales - Cost of goods sold Gross profit margin = gross profit / Sales
Gross Profit Margin = Gross Profit/Revenues Net Profit Margin = Net Profit/Revenues
Sales (or revenue, it's the same thing) - cost of goods sold= Gross Profit
Net Income = Sales - Gross profit Gross Profit - Cost of Production = Net Income
Gross Profit/Net Sales = Gross Profit Margin.
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Gross Profit = Sales - Cost of goods sold Gross profit margin = gross profit / Sales
Gross Profit Margin = Gross Profit/Revenues Net Profit Margin = Net Profit/Revenues
Gross profit calculation Gross profit = Revenue - Cost of sales
Sales (or revenue, it's the same thing) - cost of goods sold= Gross Profit
gross margin ratio is calculated as >GROSS PROFIT/NET SALES
The gross margin formula is gross profit divided by revenue. The gross profit and revenue amounts can be found by looking at a companies income statement.
Net Income = Sales - Gross profit Gross Profit - Cost of Production = Net Income
The Gross Profit Margin is an expression of the Gross Profit as a percentage of Revenue. Gross Profit Margin = Gross Profit/Revenue*100 [or] Gross Profit Margin = Revenue - (Cost of Sales)/Revenue*100 Cost of sales=it include all those expenses and income that will occur during manaufacturing and sales of goods and services
Add all the money you earned. Plus the capital. You got the gross.
Gross and Net profit are virtually the same. They both calculate EBT, earnings before taxes - all overhead and salaries.