Profit Margin - Acct 209, Texas A&M

in Chapters 5 & 6 (Video 3 of 14)

3 minutes

Profit Margin is crucial for businesses to optimize. Let's take a look at what it actually is.

This Video Mentioned Some Formulas

Revenues

– Expenses

Net Income

Profit Margin = Net Income / Sales Revenue

Sales

– COGS

Gross Profit

Gross Profit Margin = Gross Profit / Sales Revenue

Gross Profit Ratio is the same as Gross Profit Margin

1	The Multistep Income Statement	12:44
2	Gross Profit vs Net Profit	6:15
3	Profit Margin You are here.	3:22
4	Net Sales	10:03
5	COGS and Inventory	2:57
6	Perpetual vs Periodic	7:10
7	FOB Shipping?	8:51
8	Transportation In	8:41
9	COGS	6:18
10	Drawbacks to Periodic	6:07
11	Specific Identification	2:17
12	Weighted Average	4:21
13	FIFO and LIFO	20:17
14	Estimating with Gross Profit	7:23

	Click Here to View All Chapters 5 & 6 Problems at Once	View
1	Consignment Inventory	Easy
2	FOB Destination	Easy
3	Inventory Set Aside	Easy
4	Loss On Inventory	Easy
5	FOB Shipping	Moderate
6	FOB Shipping	Moderate
7	Inventory Costing	Moderate
8	Calculating Operating Income	Hard
9	The Effect of Inventory Errors	Hard