In order to calculate the gross profit margin as a percent, you need to know the revenues and the cost of the goods sold.
The general process is to subtract the total cost of goods from revenues to find your gross profit.
Then, divide your gross profit by your total revenue generated.
Then, multiply the result to find the gross profit margin percentage.
Then, multiply the result to find the gross profit margin percentage.
Joseph C.
tutor
Perhaps this additional information will be helpful.
How to Calculate Markup Percentage
By definition, the markup percentage calculation is cost X markup percentage, and then add that to the original unit cost to arrive at the sales price. The markup equation or markup formula is given below in several different formats. For example, if a product costs $100, the selling price with a 25% markup would be $125.
Gross Profit Margin = Sales Price – Unit Cost
Markup Percentage = Gross Profit Margin/Unit Cost
Sales Price = Cost X Markup Percentage + Cost
One of the pitfalls in using the markup percentage to calculate your prices is that it is difficult to ensure that you have taken into consideration all of your costs.
By definition, the markup percentage calculation is cost X markup percentage, and then add that to the original unit cost to arrive at the sales price. The markup equation or markup formula is given below in several different formats. For example, if a product costs $100, the selling price with a 25% markup would be $125.
Gross Profit Margin = Sales Price – Unit Cost
Markup Percentage = Gross Profit Margin/Unit Cost
Sales Price = Cost X Markup Percentage + Cost
One of the pitfalls in using the markup percentage to calculate your prices is that it is difficult to ensure that you have taken into consideration all of your costs.
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04/29/16
Adam H.
04/28/16