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What is the gross margin percent on an item with the selling price of 60.00 when the cost of the item is 40.00?
50%
If the retail price of an item is 21 and the retail gross profit margin is 33 percent what is the wholesale cost?
14
What is the gross margin percentage for a basketball if a store buys it for 2.50 and the retail price is marked 10.00 And the selling price is 7.50?
Gross Profit/Selling Price = Gross Margin (7.50 - 2.50)/7.50 = 66.6%
Why is it important to achieve a high gross margin?
The higher the gross margin the more profit you can make. Gross margin is the difference between cost and original sell price of a product. it is you the original conceived profit. Obviously the higher the gross margin the more profit possible. (That is as long as a customer will pay that price!!)
What is difference between Mark up and Margin?
Margin = (Sale Price - Cost)/Sale Price So lets say you are a distributor and buy soap for 1 Dollar and sell it for 2 Dollar your margin will be (2-1)/2 so 0.5 or 50 Percent gross margin. Your mark up will be how much you raise the price, so in the example above 100% from 1 to 2.
If James gross profit mark up is 25 percent then his margin on sales will be 20 percent.Yes Or No?
No, gross profit and markup are two different things. Gross profit is expressed as a percentage of the sales price, and markup is expressed as a percentage of the cost. For example the Gross Profit on something that costs $100 that is being sold for $143 is 30% GP. The markup on that same item is 43%. Bottom line, you can't have a "gross profit markup". There's a Gross Profile Margin, and a Markup.
How do you margin?
Calculating gross margin is done by taking the price of the good being sold and taking away the cost of the goods being sold. This, however, is normally given as a percentage so it is the Price of the good minus the cost of the goods, divide this by the price of the goods and then multiply by 100 to get the percentage margin.
Discuss the relative importance of BOTH gross profit and contribution margin?
Gross profit and the contribution margin are both important factors for a business' accounting functions. The gross profit allows the company to keep track of its revenue compared to expenses. The contribution margin allows the company to track the sale price of their products in relation to their costs to manufacture them.
How do you calculate Selling Price if you know the Cost price and gross profit percentage?
Multiply the cost price by the profit margin plus 100%. SP=CP*(1+PP)
Ginger Company's product has a contribution margin per unit of 11.25 and a contribution margin ratio of 22.5 percent What is the selling price of the product?
50
What is the average profit margin for a small company?
When we speak of margin we are referring to the fact that we are comparing the profit as a fraction of net sales (Turnover). It is usually referred to as the gross profit margin and one must not confuse this with gross profit mark-up which is expressing gross profit as a percentage of the cost price of goods sold. Naturally the average is the result that we achieve when we compare the gross profit for one year with the Turnover of the same year and express it as a percentage.
What is a Gross Profit Margin?
Gross margin is same as gross profit ratio. That is, it is the ratio of gross profit to sales.Gross margin or gross profit margin is the difference between the sales and the production costs of the company after excluding overhead, payroll, taxation, and interest payments. It expresses the relationship between gross profit and sales revenue. It is a measure of how well each rupee of a company's revenue is utilized to cover the costs of goods sold.Higher gross margins for a manufacturer reflect greater efficiency in turning raw materials into income.Most company's work towards attaining a particular gross profit margin or bettering it. So in many cases, the selling price of the finished goods is determined based on the margin that the company wishes to attain by selling these goods.Example: Let us say Mr.X manufactures leather belts and sells them to retail show-rooms. The cost that Mr.X incurs during the production of a single premium quality belt is Rs. 400/- He wishes to maintain a profit margin of 25% on his products. So the price he would sell his belts to his retailers is Rs. 500/-Formula:1. Gross Profit / Net Sales or2. (Net Sales - COGS) / Net Sales
