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There would be no sensible equation: it would be sales = ∞

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11y ago

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How do you work out a gross profit percentage?

gross profit divided by sales Sales = 250000 Cost = 100000 gross profit = 150000 150000 / 250000 = 60%


What is the basic C-V-P equation?

Sales revenue - Variable costs - Fixed costs = Profit


What is the equation to find gross profit?

Total revenue - Cost of sales (purchasing and making of the goods sold)


What is the difference between operating profit and profit margin?

Gross Margin = (Gross Profit/Sales)*100 Gross Profit = Sales - Cost of Sales Or in words, the Gross Margin is an expression of the Gross Profit as a percentage of Sales, where the Gross Profit is Sales minus the Cost of Sales.


What is profit divided by sales?

Profit divided by sales is profit per item.


What is the difference between gross margin and gross profit?

Gross Margin = (Gross Profit/Sales)*100 Gross Profit = Sales - Cost of Sales Or in words, the Gross Margin is an expression of the Gross Profit as a percentage of Sales, where the Gross Profit is Sales minus the Cost of Sales.


What is the difference between gross margin and profit margin?

Gross Margin = (Gross Profit/Sales)*100 Gross Profit = Sales - Cost of Sales Or in words, the Gross Margin is an expression of the Gross Profit as a percentage of Sales, where the Gross Profit is Sales minus the Cost of Sales.


How do you calculate gross profit margin using cogs and sales?

Gross Profit = Sales - Cost of goods sold Gross profit margin = gross profit / Sales


What is the effcect of cost of sales on gross profit?

Cost of sales influances the gross profit to decrease or increase as following formula: Gross profit = Sales - Cost of sales


How can the relationship between sales and profits be written?

The relationship between sales and profits can be expressed through the profit margin formula, which is (Profit / Sales) x 100. This formula shows what percentage of sales results in profit. A higher profit margin indicates that a company is more efficient at converting sales into profit.


Should you calculate the profit on cost or Sales?

We should calculate the profit on sales


What is the difference between gross margin and net profit?

Gross Margin = (Gross Profit/Sales)*100 Gross Profit = Revenue - Cost of Sales Net Profit = Revenue - Expenses Or in words, the Gross Margin is an expression of the Gross Profit as a percentage of Sales, where the Gross Profit is Sales minus the Cost of Sales. The Net Profit, on the other hand, is Revenue minus ALL Expenses (including cost of sales).