What is the difference between gross profit and gross profit margin? Why is it useful to calculate

Question:

What is the difference between gross profit and gross profit margin? Why is it useful to calculate a company's gross profit margin?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Accounting Principles Part 1

ISBN: 978-1118306789

6th Canadian edition

Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Kinnear, Joan E. Barlow

See More Books

Question Posted: Mar 15, 2017 11:12 AM

See More Questions

What is the difference between gross private domestic investment and net private domestic investment? If you were to determine net domestic product (NDP) through the expenditures approach, which of...
What is the difference between gross pay and net pay?
Office Depot operates a chain of office supply stores throughout the United States. For 2004, Office Depot reported (in thousands) net sales of $13,564,699, gross profit of $4,256,139, and operating...
The following questions deal with the topics of internal controls and audit strategies. Required: Select and justify the audit strategy you would choose in each of the following situations. Comment...
Following are transactions for Itabuna Manufacturing Company. Assume that the company has no beginning work-in-process inventory or finished goods inventory. a. Itabuna purchased $575,000 of raw...
How do you know when this purpose is achieved; and/or what standards are applied to the achievement of this purpose? L01
Using the Loans_training data set, construct a neural networks model and a logistic regression model for predicting loan approval, using the rebalanced data.
Two coils are close to each other. The first coil carries a time varying current given by I (t) = (5.00 A) e-0.025 0t sin (377t). At t = 0.800 s, the emf measured across the second coil is -3.20 V....
using this info, 1. determine the number of actual labor hours spent on tune ups during the week. 2. determine the actual hourly rate of pay for tune ups last week. Standard Hours 2.50 Standard Rate...
East Coast Digital (ECD) produces high-quality audio and video equipment. One of the companys most popular products is a high-definition personal video recorder (PVR) for use with digital television...
Is it possible for a company's profit from operations and its profit to be the same amount? If so, should any company bother to calculate both numbers?
SnowCo monitors its gross profit margin on a regular basis. Is there any need for it to also monitor its profit margin?
The 2008 statement of shareholders' equity Starbucks, the coffee shop retailer, included the following information concerning common stock (dollars in thousand): Required (a) Compute the average...
Write out the form of the partial fraction decomposition of the function (see example). Do not determine the numerical values of the coefficients. x3 (a) x + 7x+6 9x+1 (b) (x + 1)3(x + 2) Submit...
You desire to make an 80% by weight vinyl acetate to 20% by weight styrene copolymer via free radical, emulsion polymerization. The r 1 and r 2 values for these monomers are 0.01 and 55,...
Q1)In a wheel and axle machine the diameters of the wheel and the axle are 450mm and 60mm respectively.The efficiency is 97%(0.97 per unit).When a body having a mass of 40kg is being lifted.Determine...
Smith & Chief Ltd. of Sydney, Australia, is a merchandising firm that is the sole distributor of a product that is increasing in popularity among Australian consumers. The company's income statements...
C. In lab, you measure the x & y components of a possible incompressible flow field as u = 2cxy; and where cand a are constants. v = c(a + x - y) 5. (04 pts) Short answer, what is necessary for the...
Entrepreneurs can choose what state to incorporate in, and many choose ________. A. New York B. Delaware C. California D. Texas
The maximum pressure that can be developed for a certain fluid power cylinder is 15.0 MPa. Compute the required diameter for the piston if the cylinder must exert a force of 30 kN.
What is the difference between an account and a ledger?
What is the difference between an account and a ledger?
What is the difference between an account and a ledger?
thumbs up if correct A stock paying no dividends is priced at $154. Over the next 3-months you expect the stock torpeither be up 10% or down 10%. The risk-free rate is 1% per annum compounded...
Question 17 2 pts Activities between affiliated entities, such as a company and its management, must be disclosed in the financial statements of a corporation as O significant relationships O segment...
Marchetti Company, a U.S.-based importer of wines and spirits, placed an order with a French supplier for 1,000 cases of wine at a price of 200 euros per case. The total purchase price is 200,000...

What is the difference between gross profit and gross profit margin? Why is it useful to calculate

Question:

Step by Step Answer:

Gross profit is calculated as the difference between net sales revenue and cos...View the full answer

Accounting Principles Part 1

Students also viewed these Cost Accounting questions