To calculate gross margin, subtract your COGS from your revenue and divide the result by your revenue. It measures what percentage of your gross revenue (the money paid to you by customers) is yours to keep. from the University of Pittsburgh and has won numerous awards in B2B and B2C marketing. Margin, or more accurately a gross margin, is your gross profit on a job and is a percentage of the sales price. Gross margin is the ratio of gross profit and revenue. The cost of goods sold figure is comprised of a mix of variable costs (which vary with sales volume) and fixed costs (which do not vary with sales volume). She has written on business topics for, , Harbor Style Magazine, the Charlotte Sun and more, as well as advertising copy and materials. What is Gross Margin The classic measure of the profitability of goods and services sold is gross margin, which is revenues minus the cost of goods sold. CSI Net: Estee Lauder Companies Inc.'s Annual Gross Marginīarbara Bean-Mellinger is a freelance writer who lives in the Washington, D.C.COGS is what it directly costs the company to make a product. Ethical Issues in Marketing Communication The two factors that determine gross profit margin are revenue and cost of goods sold (COGS).
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