Get the answers you need at Westonci.ca, where our expert community is always ready to help with accurate information. Connect with a community of experts ready to provide precise solutions to your questions on our user-friendly Q&A platform. Join our platform to connect with experts ready to provide precise answers to your questions in different areas.
Sagot :
Profit Margin = Net Income/Net Sales
Profit Margin = $6,125/$17,500 = 0.35= 35%
The profitability of your company can be gauged by looking at your profit margin. How much of each dollar of sales or services is retained as profit is stated as a percentage of those profits. In business, the profit margin is calculated by dividing the net income by the net sales or revenue. To calculate net income, or net profit, a business simply deducts operating costs from sales.
The difference between gross and net profit margins
While a high gross profit margin and solid operational profit margin are great signs, a low net profit margin indicates wasteful spending on non-core business functions. It's a sign that your running costs are higher than the price you're charging for your products or services if the operational profit margin is negative.
To know more about Profit Margin refer here:
https://brainly.com/question/13538567
#SPJ4
We appreciate your time on our site. Don't hesitate to return whenever you have more questions or need further clarification. We hope our answers were useful. Return anytime for more information and answers to any other questions you have. We're dedicated to helping you find the answers you need at Westonci.ca. Don't hesitate to return for more.