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What is a low profit margin?

Updated: 8/17/2019
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15y ago

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Where you have a low profit apposed to a higher profit

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Q: What is a low profit margin?
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What is low profit margin?

A profit margin is the amount you make on an item verses that cost of the initial purchase i.e. Bought a widget at 100 sold at 200 profit 100 Low profit margin is when a very low amount is made on the item.


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


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


How do you calculate profit margins?

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


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%.


What is the average profit margin for bar and grill?

In Canada the after tax profit margin is 4%


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

A profit margin you can live on.


If profit margin is low how a business make high profit?

If the margin is low, then the business needs a large volume of sales. This is a mormal state of affairs for many businesses particularly when there is competition from other businesses. A petrol station may have a margin of only a few cents per litre but it sells 1000's of litres every hour.


How can a business make high profit if profit margin is low?

If the margin is low, then the business needs a large volume of sales. This is a mormal state of affairs for many businesses particularly when there is competition from other businesses. A petrol station may have a margin of only a few cents per litre but it sells 1000's of litres every hour.