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What is the purpose of a markup from the wholesale price?
It represents the profit margin of the retailer. Without that the retailer could not remain in business.
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 is a margin determined?
There are different kinds of margin. In printing, a margin is the distance between the edge of a physical page and where on the page the printing is. In business the margin is the difference between the market value of a stock and the loan a broker makes. A profit margin is calculated by finding the net profit as a percentage of the revenue.
What is the ideal Gross profit margin of a firm?
There is no exact ideal gross profit margin and it depends on size of firm, the industry in which firm is operating and many other factors like competitors profit and market segmentation etc.
How can i invest in indian stock market and earn profit?
To invest in Indian stock market and earn profit, buy high quality stocks, and within its margin of safety.
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 profit margin a measure of?
Profit margin is a measure of cost of goods combined with the cost of sales versus revenue from the goods sold. For example, if a retailer pays a wholesaler $1.00 for an item and the cost of selling the item is $.50 and the retail revenue from the sale is $2.00, then the profit margin for that item is 25% ($.50 gross profit divided by $2.00 revenue). The net profit is even less when the cost of such items as taxes, interest, and amortization are included in the cost algorithm.
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 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
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%.
