Profit margin is synonymous with the term _______ and tells whether or not total profit will be positive.

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01-07-2021
Business

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Profit margin is synonymous with the term _______ and tells whether or not total profit will be positive.

Sagot :

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Parrainidn Parrainidn · Answer 1 · 2021-07-03T00:55:12-04:00

Answer: Average profit

Explanation:

Both average profit and profit margin show the percentage of profit that a company can expect to receive from $1 worth of sales. It is calculated by dividing the profits by the sales figure,

If sales are $10 and profits are $3, the profit margin would be:

= 3/10

= 30%

This means that for every $1 of sales, there is $0.30 in profit. This method shows us whether the total profit will be negative or positive by showing us individual product profit.

Sagot :

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