How To Calculate

Learn how to calculate anything
Menu
  • bmi
Home
Cost
How to Calculate Gross Margin.
Cost

How to Calculate Gross Margin.

Rosemary Njeri

Gross margin is the amount remaining after a retailer or manufacturer subtracts the cost of goods sold from the net sales.

Gross margin is important because it shows whether your sales are sufficient to cover your costs.

A good gross margin in one industry is not necessarily good for another.

Formula to calculate gross margin.

Calculate Gross Margin.

Example:

Suppose a firm’s net sales for the previous year is $2,000,000 and the cost of goods sold was $700,000. Calculate the firm’s gross margin.

Therefore, the gross margin of the firm is $ 1,300,000.

Share
Tweet
Reddit
Pinterest
Email
Prev Article
Next Article

Related Articles

How to Calculate Present Value in Excel.
Present value, also known as discounted value describes how much …

How to Calculate Present Value in Excel.

How to Calculate Average Variable Cost.
What is Average Variable Cost? In order to understand and …

How to Calculate Average Variable Cost.

Leave a Reply Cancel Reply

Popular Posts

  • 5 Best AI Apps for Solving Complex …
    March 22, 2023 0

Categories

learntocalculate.com is a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for sites to earn advertising fees by advertising and linking to amazon.com.

How To Calculate

Learn how to calculate anything

Pages

  • About Us
  • Contact Us
  • Privacy Policy
Copyright © 2023 How To Calculate

Ad Blocker Detected

Our website is made possible by displaying online advertisements to our visitors. Please consider supporting us by disabling your ad blocker.

Refresh