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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.
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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 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.
What is the profit margin if the asset turnover ratio is 3 time and the return on asset is .1?
Return on Assets = Profit Margin on Sales x Asset Turnover .1 = Profit Margin on Sales x 3 .033 = Profit Margin on Sales
What is the difference between operating profit 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 affects gross margin?
The Gross Margin, also known as the Gross Profit Margin, is an expression of the Gross Profit as a percentage of the Revenue. It is calculated using the following: Gross Profit Margin = Gross Profit/Revenue*100 Looking at the input variables of the equation, it is clear that the factors that would affect the Gross Profit Margin would be the Gross Profit and the Revenue. What affects Gross Profit and Revenue would be an endless topic of it's own.
What is a low profit margin?
Where you have a low profit apposed to a higher profit
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%.
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%
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.
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.
