Define gross margin?
Submitted by: MurtazaGross margin is the difference between:
1) the cost to produce or purchase an item, and
2) its selling price.
For example, if a company's manufacturing cost of a product is $28 and the product is sold for $40, the product's gross margin is $12 ($40 minus $28), or 30% of the selling price ($12/$40). Similarly, if a retailer has net sales of $40,000 and its cost of goods sold was $24,000, the gross margin is $16,000 or 40% of net sales ($16,000/$40,000).
Submitted by: Murtaza
1) the cost to produce or purchase an item, and
2) its selling price.
For example, if a company's manufacturing cost of a product is $28 and the product is sold for $40, the product's gross margin is $12 ($40 minus $28), or 30% of the selling price ($12/$40). Similarly, if a retailer has net sales of $40,000 and its cost of goods sold was $24,000, the gross margin is $16,000 or 40% of net sales ($16,000/$40,000).
Submitted by: Murtaza
Read Online Business Ratios Job Interview Questions And Answers
Top Business Ratios Questions
| ☺ | What is Accrued compensation? |
| ☺ | What is NOI? |
| ☺ | Described turnover? |
| ☺ | Define leverage? |
| ☺ | Described financial leverage? |
Top Business and Economics Categories
| ☺ | Taxation Interview Questions. |
| ☺ | Economics Interview Questions. |
| ☺ | Accounts Receivable (AR) Interview Questions. |
| ☺ | General Ledger Interview Questions. |
| ☺ | Fixed Assets Interview Questions. |
