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What is the difference between these two? My homework requires me to solve the profit margin and I’m not sure which formula to use

Accounting Dec 02, 2020

What is the difference between these two? My homework requires me to solve the profit margin and I’m not sure which formula to use. Thank you!

Profit Margin = (Net Profit/ Sales Revenue)

Net Profit Margin = (Revenue - Cost)/Revenue

Expert Solution

profit margin by default is (revenue - cost)

to express it in terms of % we use ( revenue - costs) / revenue

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