Gross Margin: defined by the Sticky-Marketing.com monthly magazine |
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The difference between sales revenue and costs of production, (sales revenue minus costs) various companies specify gross margin in different ways so it is important to ensure
you know what is included in the costs removed to reach the gross margin figure.
Gross margin is often expressed as a percentage of the selling price, e.g. selling price of £100 minus costs of £75 leaves a margin of £25 which as 25/100 would make a gross
margin of 25%.
It is fairly usual for direct costs of materials and labour and production overheads attributable to production of that item to be removed from the selling price to reach a gross margin
figure.
See also profitability, gross profit, net profit
10/06/2001 Use your browser back button or
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