the dollar gross margin earned by Turandot on the special order for 200 planters Gross margin = total incomes - total expenses
= (200*$50) - 4,000
= $10,000 - $4,000
= $6,000
Gross margin equates to internet income minus the cost of goods sold. The gross margin suggests the amount of profit made before deducting promoting, standard, and administrative (SG&A) expenses. Gross margin can also be called gross earnings margin, which is gross income divided by net sales.
The gross income margin method, Gross profit Margin = (revenue – cost of goods sold) / revenue x a hundred, shows the percentage ratio of sales you hold for every sale in spite of everything costs are deducted.
The gross income margin reflects how successful an agency's govt management group is in producing revenue, thinking about the fees concerned in producing their products and services. In short, the better the variety, the more green control is in generating income for each dollar of value concerned.
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