operating profit margin

What Factors Affect Operating Profit Margin?

Several factors can influence a company's operating profit margin, including:
Cost of Goods Sold (COGS): Higher COGS can reduce the operating profit margin.
Labor Costs: Increased wages and benefits can lower the margin.
Economies of Scale: As production increases, the cost per unit may decrease, improving the margin.
Pricing Strategy: Premium pricing can increase the margin, while discount pricing can decrease it.
Operational Efficiency: Efficient use of resources can boost the margin.

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