Operating margin is calculated by dividing operating income by net sales or revenue. The result is often expressed as a percentage. Operating income is a measurement of profit that includes all expenses except interest and income tax.
Work out a profit margin by dividing a measure of the company's profitability by the revenue, or sales, figure. There are a few different calculations for profit margins, depending on what data is required
The formula for profit is total revenue minus total expenses, resulting in net profit, according to Accounting Tools. Company finance officials review net income often to determine the viability of the company.
Marginal Product, or MP, is the change in Total Product, or TP. It results from the use of one more (or less) unit of labor, or L. Thus, the formula to find the marginal product is MP=change in TP/ change in L.
The formula for marginal revenue is simply dividing the change in total revenue by the change associated with output quantity. Technically speaking, marginal revenue is the revenue associated with the sale of a single, additional product or unit of output.
The margin of error formula is an equation that measures the range of values above and below the sample statistic. It is defined by taking the critical value and multiplying it by the standard error of the statistic.
A company has good gross margin when it is competitive with its industry peers and remains stable in the long-term, according to Investopedia. Profit margins vary greatly from industry-to-industry. For example, the airline industry averages 5 percent, while the software...