Formula to calculate gross margin
For example 001 equals 1 01 equals 10 percent and 10 equals 100 percent. Gross margin is a companys total sales revenue minus its cost of goods sold COGS divided by total sales revenue expressed as a percentage.
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The gross margin represents the percent of total.
. To calculate the Gross Profit Margin percentage divide the price received for the sale by the gross profit and convert the decimals into a percentage.
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