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

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Q: How do you calculate profit margins?
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Related questions

How do you find profit maximizing level of output?

The best way to find the profit maximizing level of to calculate it using the profit maximizing formula. To calculate it you need to know margins and how long it takes you to do each task.


What is the relationship between profit margins and growth capacity?

What is the relationship between profit margins and growth capacity?


What are the nouns in the sentence Manufacturers want to keep their prices down on their goods while retaining their profit margins?

Manufacturers, prices, and goods are nouns. Either margins or the compound form "profit margins" can be a noun, since profit is acting as a noun adjunct.


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46%


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52


Do you want Gross profit rate high or low?

Higher gross profit indicates high profit margins which is good!


How do you improve bottom line profit?

Increase turnover whilst maintaining margins but without increasing fixed costs, or reduce costs, or increase margins without losing any volume sales, or any combination of the above. There is always a trade off between volume sales and margins. You need to calculate and compare the range of differences in net profit for low margin and high volume, with high margin and low volume.


What is the average net profit margins for lubrication industry?

It is $14


What is considered a small profit margin?

Well, if you making less than 5% of the gross sales as your profit after all expenses, then you have small profit margins.


How effective is outsourcing?

The factors of production become cheaper thus causing decreased production expenses and ultimately greater margins of profit. Simply put, strategic outsourcing allows one to increase margins of profit.


How did the leeds merchants justify the use of machines?

It hugely increased Profit margins


What is used to show increment in profit margins boost or advance?

They are expressed as percentages