Gross profit is the amount of profit in dollars...gross margin is the % profit to expenses
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Gross Margin = (Gross Profit/Sales)*100 Gross Profit = Sales - Cost of Sales 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.
Gross Profit/Net Sales = Gross Profit Margin.
Gross Profit Margin = Gross Profit/Revenues Net Profit Margin = Net Profit/Revenues
Gross Profit = Sales - Cost of goods sold Gross profit margin = gross profit / Sales
The Gross Profit Margin is an expression of the Gross Profit as a percentage of Revenue. Gross Profit Margin = Gross Profit/Revenue*100 [or] Gross Profit Margin = Revenue - (Cost of Sales)/Revenue*100 Cost of sales=it include all those expenses and income that will occur during manaufacturing and sales of goods and services