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    jimmyjimmy12's Avatar
    jimmyjimmy12 Posts: 19, Reputation: 1
    New Member
    		  
    #1

    Sep 28, 2009, 05:26 PM
    Calculating Gross Profit %
    So I was just wondering, calculating the gross profit %

    The formula is

    COGS/ Sales *100

    What I want to know is for the sales, is it divided by just sales or total revenue (sale +Other Income)?
    bunnyKutty's Avatar
    bunnyKutty Posts: 60, Reputation: 5
    Junior Member
    		  
    #2

    Sep 28, 2009, 09:31 PM

    Gross profit ratio is (gross profit / sales) x 100 and not COGS/ Sales

    The denominator should be sales and not total income
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