Question

The gross profit margin is unchanged, but the net profit margin declined over the same period. What could be the reason for this change?

Answer 1

The gross profit margin is unchanged, but the net profit margin declined over the same period. This could have happened if? cost of goods sold increased relative to sales. sales increased relative to expenses

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.