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View Full Version : Calculating Gross Profit %


jimmyjimmy12
Sep 28, 2009, 05:26 PM
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
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