Explore Westonci.ca, the leading Q&A site where experts provide accurate and helpful answers to all your questions. Explore thousands of questions and answers from a knowledgeable community of experts ready to help you find solutions. Explore comprehensive solutions to your questions from a wide range of professionals on our user-friendly platform.
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
Thank you for visiting our platform. We hope you found the answers you were looking for. Come back anytime you need more information. Your visit means a lot to us. Don't hesitate to return for more reliable answers to any questions you may have. Get the answers you need at Westonci.ca. Stay informed by returning for our latest expert advice.
