calculate gross margin subtract Cost of Goods Sold from the t. revenue

How To Calculate Sales Revenue Using A Gross Margin

What is a Gross Profit Margin? A gross profit margin is used to determine the profitability of the business. We define our gross profit margin by determining the sales revenue of our business once our cost for production has been deducted. This includes parts, labor, and raw materials. We use these calculations to determine the best possible price for our products. Understanding any product priced too high will not be competitive in the market is important. We calculate the dollar amount for our gross profit margin by deducting the cost of the products we have sold from the total revenue earned

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