what difference between profit and profit margin?

Answer 1

in really simple terms, your profit is how much you made on the sale. for example, if you sold an item that cost you $40 to make for $100, your gross profit is $60. you also had expenses of $25 (taxes, etc). your net income is $35
your profit margin is usually given as a %. (net income divided by revenue)
= 35/100 = 35%

note that there is a gross profit margin and a net profit margin.

Answer 2

Profit is how much money leftover after your sales minus all the cost items, which is normally expressed in a dollar number. Profit margin is the percentage of the profit in terms of your total sales.

For instance, when your sales is $100 millions and your profit is $10 millions, your profit margin is 10%.

Answer 3

Profit is now much money a company makes (sales - costs). Profit margin is the percentage of profit over costs. Grocery chains usually have around a 3% margin (high sales but low profits). Microsoft runs around a 40% margin.

Answer 4

Profit margin would be the actual % profit added to the cost price or in reverse it would be a % of the cost price allocated to profit, profit would be the sales less all expenses including tax

Answer 5

Profit is any cash realized after expenditures, taxes and other pay outs. Profit margin is a ratio of profitability calculated as net income divided by revenues, or net profits divided by sales. It measures how much out of every dollar of sales a company actually keeps in earnings.

Answer 6

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Profit = Revenue - Cost Profit Margin = (Profit / Revenue) x 100

Answer 7

Profit is the monetary unit (IE dollar or peso) difference between cost and sell price. Profit margin is the percentage, based on the selling price.

Answer 8

Profit is the "absolute" value of the profit, for example $$$ of profit. Profit margin, when applied to a product, is the difference between selling price and cost stated as a percent of the selling price.

For example, if your cost of goods is $8.00 and your selling price is $10.00, then the following is true:

Profit = $10.00 - $8.00 = $2.00

Profit Margin = (($10.00 - $8.00)/$10.00) x 100% = 20%

Answer 9

profit is actual, and profit margin is a projection

Answer 10

margin