[stoleway]

I need some guidance on this one.

Profit Margin = Operating Income/sales

I want to know why Wiley think it’s rather= Net Income/Sales

I’m I wrong or is it just wiley trying to confuse the hell out of me?

REG -63│ 84!!
BEC- 59│70│ 71 │78!
AUD- 75!
FAR- 87!

Mass-CPA

[Anonymous]

you are mistaken.

profit margin is net income/sales which is AFTER interest and taxes

OPERATING profit margin is operating income/sales. operating income is BEFORE interest and taxes.

another term for operating profit margin is earnings before interest and taxes or EBIT.

[Anonymous]

you are mistaken.

profit margin is net income/sales which is AFTER interest and taxes

OPERATING profit margin is operating income/sales. operating income is BEFORE interest and taxes.

another term for operating profit margin is earnings before interest and taxes or EBIT.

[stoleway]

Oh ok, so there are two Profit Margins: Operating Profit Margin and Profit Margin.

This is well noted, thank you:)

There are instances where Wiley has not been consistent in applying this principle.

I will post when I come across one.

REG -63│ 84!!
BEC- 59│70│ 71 │78!
AUD- 75!
FAR- 87!

Mass-CPA

[stoleway]

Oh ok, so there are two Profit Margins: Operating Profit Margin and Profit Margin.

This is well noted, thank you:)

There are instances where Wiley has not been consistent in applying this principle.

I will post when I come across one.

REG -63│ 84!!
BEC- 59│70│ 71 │78!
AUD- 75!
FAR- 87!

Mass-CPA

[Author]

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