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The difference between Gross Profit Margin and Operating Profit Margin is that the gross profit margin accounts for only Cost of Goods sold, but the Operating Profit Margin accounts for both Cost of Goods sold and Administration/Selling expenses.

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Wiki User

10y ago
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3y ago
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raphaelfox

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2y ago
In finance, a margin is a guarantee that the holder of a financial instrument must deposit to cover all or part of its counterparty's credit risk. This risk may exist if the holder: borrows money from the counterpart to purchase financial instruments;
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2y ago
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2y ago
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Tonnai Jackson

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2y ago
Its the same thing as a margin but its a line that u cant see but seperate between something.
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2y ago
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Professor

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2y ago
While there is a difference between margin and margin, there is in fact no difference between margin and margin. Note that "margin", "margin", "margin", and "margin" are all in fact different concepts.
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2y ago
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Multitek Technologie...

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2y ago
The Gross Profit Margin is overall profit with expanses but profit margin only show profit after cutting overall expenses.
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2y ago
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2y ago
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ROBERT SKINNER

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4y ago

Profit margins are important if your suppliers keep raising the price of the product you need to sell or product you need for manufacturing. Margins are the differnt changes in the cost to profit percentages. If you buy a case of cookies for 5 dollars and sell them each for 10 dollars profit percentage is a 200 % or 50 % mark up. So your supplier now charges 6 dollars and you still sell them for 10 dollars . Your cost to profit percentages drop. If you raise your prices . Then the cost to profit percentages rises. This fluctuations are called margins. Most distributors want you to eat the loss in these fluctuations because . because your changing the the supply and demand curve. Which state and that and increase in price changes the quantity demand. which in laymens term states that you will sell less. In which drop the profit of both you and your distributor. Which probably hurt the distributors more because of his overhead. Any time your raise a price of a product you slow the sale of that product. That why margins are important.

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4y ago

Both ratios are expressed in percentage terms but have distinct differences between them. Profit margin is a percentage measurement of profit that expresses the amount a company earns per dollar of sales. ... Profit margin is the percentage of profit that a company retains after deducting costs from sales revenue

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4y ago

Both ratios are expressed in percentage terms but have distinct differences between them. Profit margin is a percentage measurement of profit that expresses the amount a company earns per dollar of sales. ..Profit margin is the percentage of profit that a company retains after deducting costs from sales revenue.

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COCOTIER Solutions

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2y ago

First, find your gross profit, or the difference between the revenue ($200) and the cost ($150). To find the margin, divide gross profit by the revenue. To make the margin a percentage, multiply the result by 100. The margin is 25%

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Christopher Schimmel

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2y ago
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rytnix

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2y ago

Gross profit margin is the proportion of money left over from revenues after accounting for the cost of goods sold (COGS)

Net profit margin or net margin is the percentage of net income generated from a company's revenue. Net income is often called the bottom line for a company or the net profit.


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sesamy mido

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2y ago

Hey

In finance, margin is the collateral that a holder of a financial instrument has to deposit with a counterparty (most often their broker or an exchange) to cover some or all of the credit risk the holder poses for the counterparty. This risk can arise if the holder has done any of the following:

Borrowed cash from the counterparty to buy financial instruments,

Borrowed financial instruments to sell them short,

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2y ago
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2y ago

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Laurence Kemmer

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2y ago
Can you elaborate

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Madison Ortagus

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2y ago

Foreshadowing is a literary device in which a writer gives an advance hint of what is to come later in the story. Foreshadowing often appears at the beginning of a story, or a chapter, and it helps the reader develop expectations about the upcoming events. A writer may implement foreshadowing in many different ways. Some of these ways include: character dialogues, plot events

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MIRA

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2y ago

Comparing Gross Margin and Net Margin

The following are key differences between the gross margin and net margin of a business:

Income statement location. The gross margin is located mid-way down the income statement, immediately after the cost of goods sold line item. Net margin is located at the bottom of the income statement, following all expense line items.

Size. The gross margin is always larger than the net margin, since the gross margin does not include any selling and administrative expenses.

Tax effect. The gross margin is not net of any income tax expense, while the net margin does include the effects of income taxes.

Type of cost inclusions. The gross margin is more likely to incorporate a high proportion of variable expenses, including the direct materials required to generate sales. The net margin contains a much lower proportion of variable expenses, since it also includes selling and administrative expenses, many of which are fixed costs.

The gross margin and net margin are both considered critical to the financial health of a business, so both are closely watched on a trend line. Any drop in either measurement will likely trigger a detailed investigation by management.

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