Okay ok but I still don't understand why

aysha573

This happens. This type of question is excellent if you really want to know how to perform this calculation. Let's say your business earned r$2,000 and spent r$1,800 to sell its products or services. In this case, you only had a profit margin of 4%, a value that offers you a different view of your activity. Therefore, the main reason why entrepreneurs need to know how to calculate the profit margin is to have the chance to better understand the state of their business. Thanks to this, you will have an overview of how all your sales are performing to make increasingly assertive decisions. And how to calculate profit margin? Now we come to what really matters in this content. Let's find out now, with practical and fun examples. Gross profit margin let's assume that maria owns a hotel for dogs and cats and, to keep everything well organized, she decides to.

Hire a management tool, which you can provide. The installation service for this tool costs r$300 , plus transportation and labor costs, which can be around r$150 . It's worth remembering: all parts Bank User Number Data and materials must be included in this bill list too. When calculating the profit margin, you arrived at a value of r$100 for the service provided to maria. How do you arrive at this value? Simple: adding up all the revenue and subtracting what was spent when performing the service. Thus, the surplus will be represented as the profit for the period, which allows you to know how your business is doing. In addition to this calculation, you need to perform the percentage calculation so that the results are more accurate. In other words, the calculation of the profit margin can be carried out by dividing the profit with the total revenue, multiplying the result by 100.



So assuming that your company earned r$10,000 from installing the tool in one month, with costs that were around r$5,000, the bill would look like this: total revenue: r$10,000 costs: thus, your company's profit margin was 50%. When presenting this margin for a period to a banking institution, for example, you must show this number. Net profit margin a person doing math on a calculator and taking notes. Well, you now know how to calculate gross profit, so you need to know how to calculate net profit. Let's use the same example as the hotel for dogs and cats, with the difference that, now, it is necessary to slaughter: the taxes; payroll taxation; company rent; water, electricity, internet bills, among others; employee salaries. In other words, net profit is only obtained from the moment you know the gross profit.