Profit margin: Difference between revisions

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So for example:
'''Example'''


if Revenues = 100, and Costs = 70.
Revenues = 100  


Then the surplus (profit)  
Costs = 70
 
 
Then the surplus (profit):


= 100 LESS 70  
= 100 LESS 70  
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And the profit margin  
And the profit margin:


= 30/100  
= 30 / 100  


= 30%.
= 30%.

Revision as of 11:20, 18 March 2015

Accounting.

A measure of the surplus of revenues over relevant costs, often expressed as a percentage of revenues.


Example

Revenues = 100

Costs = 70


Then the surplus (profit):

= 100 LESS 70

= 30.


And the profit margin:

= 30 / 100

= 30%.


See also