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Sum Vs AGG

Sum Vs AGG

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Hi everyone!
I have a question regarding the use of SUM in a calculated field.
 

For the picture above, the GM(gross margin)% is calculated using [Gross Profit]/[Revenue].
Whereas for the picture below, GM% is calculated using SUM([Gross Profit])/SUM([Revenue]).
 

My question is, why did the calculation in the first picture not work (what exactly was it calculating)? AND why do we need to use SUM?
Thank you in advance!
 

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