Profit margin ratio calculator
Each item in the table has different price and cost so the profit varies across items. Net profit margin measures the profitability of a company by taking the amount from the gross profit margin and subtracting other operating expenses.
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Profit margin is the ratio of profit divided by revenue.
. It is determined by subtracting the cost it takes to produce a good from the total revenue that is made. Gross profit margin shows how efficiently a company is running. The general formula where x.
In other words given a price of 500 and a cost of 400 we want to return a profit margin of 20.
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