profit

For instance, a organization may possibly have a higher gross profit margin but a weak general sales volume, which will not be sufficient to cover expenses not taken into account in the gross profit ratio formula. In contrast, a organization with a low percentage point could have a high profitability if its sales or reputation unexpectedly soar. • If the gross profit and, consequently, the gross profit margins are declining, the enterprise need to be losing dollars. A declining profit margin alerts management to the need to lessen the price of manufacturing sold items in order to increase the gross...