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Gross Profit Margin ?
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Answer / guest
The gross margin ratio is computed by dividing the company’s
gross profit dollars by its net sales dollars.
Ex: Let’s assume that a company has net sales of $800,000
and its cost of goods sold is $600,000. This means its gross
profit is $200,000 (net sales of $800,000 minus its cost of
goods sold of $600,000) and its gross margin ratio is 25%
(gross profit of $200,000 divided by net sales of $800,000).
| Is This Answer Correct ? | 48 Yes | 4 No |
Answer / sunill123
This Ratio measures the gross profit margin on the total net sales made by the company.
This ratio tells gross margin on trading & is calculated
Gross profit/Net Sales*100
Where Gross Profit= Sales-Cost of goods sold(COGS)
| Is This Answer Correct ? | 6 Yes | 1 No |
Answer / tanmaya.10@rediffmail.com
Gross Profit Margin= net sales/cost of goods sold
| Is This Answer Correct ? | 3 Yes | 0 No |
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