Many different textbooks break the expenses down into subcategories like cost of goods sold operating expenses interest and taxes but it doesnt matter. This tells us how much money remains after paying for the inventory that was sold. Net Profit Margin 075.
Now you can subtract your total expenses of 5300 from your gross profit of 8000.
If this number is negative it implies that the company is making losses and its cost price is more than the selling price. Net Profit Margin 075. Now you can subtract your total expenses of 5300 from your gross profit of 8000. If this number is negative it implies that the company is making losses and its cost price is more than the selling price.