Question

Operating profit margin calculation does not discriminate between what

Answer 1

Answer:

Operating Profit Margin is a profitability or performance ratio used to calculate the percentage of profit a company produces from its operations, prior to subtracting taxes and interest charges. It is calculated by dividing the operating profit by total revenue, and expressing as a percentage. The margin is also known as EBIT (Earnings Before Interest and Tax) Margin.

Answer 2

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The difference between Gross Profit Margin and Operating Profit Margin is that the gross profit margin accounts for only Cost of Goods sold, but the Operating Profit Margin accounts for both Cost of Goods sold and Administration/Selling expenses.