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math equation for profit margin. To measure gross profit margin as a number the formula is. What Is the Formula for Calculating Profit Margins.
How To Calculate Net Profit Margin In Excel Net Profit Excel Billing Software from www.pinterest.com
During a month you have a net income of 2000. This means that the profit per item is 140. Now divide 10000 by 14 and get 7142857.
Your revenue is 8000.
This is the percentage of the cost that you get as profit on top of the cost. In each case you calculate each profit margin using a different measure of profit. For example you sell bicycles for 200 each. Your revenue is 8000.
