Gross Profit or Gross Profit Margin?

in case you never know before the differences between gross profit and gross profit margin is gross profit it stated on value of money or currency and then gross profit margin is stated on percentage

so let's say you're revenue is $10 million and then your breast profit is 2 million dollars your gross profit margin is 20%

so what's wrong with that?

if you are focused on gross profit margin, let's say you are targeting your gross profit margin and 50% of your revenue, and then you can't just a million in revenue so your gross profit is only 500k thousand dollars. is that value is exceeds your fixed cost? if doesn't that means your gross profit margin Target is useless

let's say you are set the target of gross profit at a million dollars and then your revenue is 10 million dollars so your gross profit margin is so low, it stated on 10%. the 10% numbers is really low but your business is in a good way, assume your fixed cost at 500k thousand dollars.

so don't get me wrong here, the thing is you'll have to set the target of gross profit and gross profit margin simultaneously 

better set the target of gross profit or gross profit margin?

It is difficult to say whether it is better to set a target for gross profit or gross profit margin without more information about the specific circumstances of the company in question. Both metrics can be useful in different contexts and can provide valuable insights into a company's financial performance.

Gross profit is a measure of the profit a company makes after accounting for the cost of goods sold, and it can be a useful metric for comparing a company's performance to that of its competitors or to industry benchmarks. Setting a target for gross profit can help a company focus on improving its financial performance by increasing its revenue or reducing the cost of goods sold.

Gross profit margin, on the other hand, is a measure of a company's profitability, calculated by dividing its gross profit by its total revenue. Setting a target for gross profit margin can help a company focus on improving its profitability by increasing its gross profit or increasing its revenue.

In general, it may be best to consider both gross profit and gross profit margin when evaluating a company's financial performance and setting targets for improvement.

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