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-   -   Calculating Gross Profit % (https://www.askmehelpdesk.com/showthread.php?t=400793)

  • Sep 28, 2009, 05:26 PM
    jimmyjimmy12
    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)?
  • Sep 28, 2009, 09:31 PM
    bunnyKutty

    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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