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Profit, is called the difference of amount between purchase price and sale price. Through the profit margin we come to know that how the business is running.

Or, how successful (profitable) IS this business?

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Q: What is measured by profit margin?
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What does profit margin mean?

Profit margin means the amount of profit you make measured in a percentage. This can include:Gross Profit marginNet Profit marginMarkup Profit margin


How do you calculate a profit margin ratio?

Profit Margin ratio is the comparison of profit as a percentage of revenue and calculated as follows Profit Margin ratio = Net Profit/Revenue


How do you calculate profit margins?

Gross Profit Margin = Gross Profit/Revenues Net Profit Margin = Net Profit/Revenues


What is a net margin?

The Net Profit Margin is an Expression of the Net Profit as a percentage of the Revenue, where the Net Profit is the Revenue minus all Expenses. The Net Profit Margin can be calculated in the following ways: Net Profit Margin = Net Profit/Revenue*100 [or] Net Profit Margin = (Revenue - all Expenses)/Revenue*100


If net profit after tax is 64000 and sales is 720000 what is the net profit margin?

Net profit margin = 64000 / 720000 * 100 Net profit margin = 8.89%


What is the difference of gross profit and gross margin?

Gross profit is the amount of profit in dollars...gross margin is the % profit to expenses


What is the average profit margin for nutritional supplements?

The average profit margin is 35%.


How is profit productivity measured?

Profit productivity is typically measured by dividing an organization's profit by the resources used to generate that profit. The formula can vary but commonly involves calculating profit margin (net income divided by revenue) or return on investment (net profit divided by total assets). The resulting ratio provides insight into how efficiently a company is utilizing its resources to generate profit.


What is a good profit margin for an ornamental wrought iron business?

A profit margin you can live on.


What is the average profit margin for bar and grill?

In Canada the after tax profit margin is 4%


What is the difference between gross margin and profit margin?

Gross Margin = (Gross Profit/Sales)*100 Gross Profit = Sales - Cost of Sales Or in words, the Gross Margin is an expression of the Gross Profit as a percentage of Sales, where the Gross Profit is Sales minus the Cost of Sales.


What is the average profit margin of the furniture industry?

Contract furniture manufacturer profit margin is between 30-35%. Distributor or "Dealer" profit margin is 20-25%.