Question: What is a difference between the profit margin and the gross profit rate? A profit margin of 7 % means that 7 cents of each

What is a difference between the profit margin and the gross profit rate?
A profit margin of 7% means that 7 cents of each net sales dollar ends up in net income and agross profit rate of 7% means that cost of the goods was 7% of the selling price.
A profit margin of 27% means that 27 cents of each net sales dollar is net income and a gross profit of 27% means that the gross profit was 27% of the selling price.
None, these are interchangeable terms.
The gross profit rate is computed by dividing net sales by gross profit and the profit margin is computed by dividing net sales by net income.
What is a difference between the profit margin

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