Profit margin

[Former Member]

Hi All,

i have one clafification, how to calculate the profit margin while CIN in implemented in pricing procedure. it means while calculating do we need to add the excise duty to the discounted price or do we take only disocounted price?

please can you give the clear clarification on the about the pricing procedure while CIN is included.

regards

RP

[Former Member]

Hi,

Profit margin will be calculated as same way even if CIN used. Profit margin is nothing but Net value minus cost of the material. its all depends on your clients decision whether they need to include the Tax or not include.

Muthupandiyan

[Lakshmipathi]

Dear RP

To arrive at Profit Margin, you need to consider base value minus expenses and exclusive of duties and taxes.

=> net profit margin equals net income divided by net sales

=> gross profit margin equals gross profit divided by net sales

The difference between the net purchase and selling prices of goods dealt in by a trading concern ; the percentage by which a merchant increases the cost of goods to arrive at his selling price can be called as Profit Margin.

thanks

G. Lakshmipathi