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13y ago

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What is the difference between net and gross margin?

Gross margin is Gross income as a percentage of revenue. Net Margin is net income as a percentage of revenue.


Calculate gross margin percentage?

Gross Profit/Net Sales = Gross Profit Margin.


How do you calculate net sales when gross margin is known?

Gross margin (also known as gross profit) is the difference between Net sales and Cost of goods sold: Net sales - Cost of goods sold = Gross margin Therefore, if you know Gross margin, add it to Cost of goods sold to get Net sales.


How do you calculate gross margin ratio?

gross margin ratio is calculated as >GROSS PROFIT/NET SALES


How do you calculate net profit margin if there is net loss?

The Gross Profit Margin = Gross Profit/Revenue*100 regardless of weather the Gross Profit is positive or negative (a loss). Therefor, it is acceptable to have a negative Gross Profit Margin.


How do you calculate profit margins?

Gross Profit Margin = Gross Profit/Revenues Net Profit Margin = Net Profit/Revenues


What is the difference between gross margin and net profit?

Gross Margin = (Gross Profit/Sales)*100 Gross Profit = Revenue - Cost of Sales Net Profit = Revenue - Expenses 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. The Net Profit, on the other hand, is Revenue minus ALL Expenses (including cost of sales).


When you're preparing an income statement to calculate gross margin you must subtract?

You must subtract the cost of goods sold from the net sales to get the gross margin (same as gross profit)


How does a firm compute Profit margin?

gross profit is divided by net sales.


What are the effects of a decrease in net profit margin?

A decrease in net profit margin means that the business is spending a lot of money on its expenses. The business may still have a high gross income.


How is a gross margin calculated?

the excess of the net sales revenue over the cost of goods sold.


Example of how to find the net profit margin?

gross income minus expences = net profit. happy accounting David G.