Finance

Gross Margin

Gross Margin

Gross Margin is a businesses entire gross sales income subtract its cost regarding products marketed, broken down from the entire gross sales income, expressed like a proportion. The gross margin signifies the percentage regarding entire gross sales income how the company maintains after occuring the primary prices of making the products in addition to services marketed with a company. The higher the parentage, the greater the company maintains upon just about every buck regarding sales to support its prices in addition to commitments. Gross Margin calculated as: Gross Margin (%) = (Revenue – Cost of goods sold) / Revenue