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Hi All,
Could you please explain what profit margin means and how it is different from profit in the BOM context?
Many thanks, in advance!
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BOM calculation includes an option to calculate a "Cost plus Margin" sales price - so the profit margin is the percentage of the cost added to the cost to calculate the sales price. I guess it's most commonly called the gross margin, because after you've transacted the sale you'll need to take other costs into account to calculate an overall profit. For instance you might calculate your sales price as "manufacturing cost + 25%", but in any given month the company might not make any profit at all (especially if they are a multinational operating in a small country and don't want to pay taxes :) )
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