MANAGEMENT

Detailed explanation-1: -How do you calculate gross profit margin? The gross profit margin is calculated by subtracting direct expenses or cost of goods sold (COGS) from net sales (gross revenues minus returns, allowances and discounts). That number is divided by net revenues, then multiplied by 100% to calculate the gross profit margin ratio.

Detailed explanation-2: -The COGS margin is calculated by dividing a company’s cost of goods sold (COGS) by its revenue, while the gross margin is calculated by dividing a company’s gross profit by revenue. Where: Gross Profit = Net Revenue – Cost of Goods Sold (COGS)

Detailed explanation-3: -Gross profit, also known as gross income, equals a company’s revenues minus its cost of goods sold (COGS). It is typically used to evaluate how efficiently a company is managing labor and supplies in production.

Detailed explanation-4: -What is the gross profit margin formula? The gross profit margin formula, Gross Profit Margin = (Revenue – Cost of Goods Sold) / Revenue x 100, shows the percentage ratio of revenue you keep for each sale after all costs are deducted.

Detailed explanation-5: -The gross profit margin is calculated by taking total revenue minus the COGS and dividing the difference by total revenue.