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The gross margin ratio for a business can be determined by subtracting the cost of goods sold from the total revenue, and then dividing that result by the total revenue. This ratio helps to measure how efficiently a company is producing and selling its products.

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AnswerBot

5mo ago

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Related Questions

How do you calculate gross margin ratio?

gross margin ratio is calculated as >GROSS PROFIT/NET SALES


How do you figure gross magin ratio if net sales is 28496 million its cost of good sold was 19.092 million and net income is 997 million?

Gross margin ratio = (sales - cost fo sales) / sales Gross margin ratio =( 28496 million - 19092 million ) / 28496 million


How is CM ratio useful in planning business operations?

The contribution margin ratio is the percentage of a company's contribution margin to its net sales


What is an operating margin in business?

In business, an operating margin is the revenue of a business minus the operating expenses. It is the ratio of operating income divided by net sales.


What is margin of safety ratio?

Margin of safety ratio = margin of safety/sales revenue


How do you determine the activity and dollar sales at the break even point?

The activity level at the break even point = fixed expenses/unit contribution margin Dollar sales at the break even point = fixed expenses/contribution margin ratio contribution margin ratio = contribution margin/sales


What is sales margin?

A sales margin is defined as the ratio got by dividing net profit by sales. This is one of the best indicators to measure success of your business.


Contribution margin ratio always increases when?

The contribution margin ratio increases when?


What is contribution margin ratio?

contribution margin ratio = (sales - variable costs) / Sales


How do you calculate a profit margin ratio?

Profit Margin ratio is the comparison of profit as a percentage of revenue and calculated as follows Profit Margin ratio = Net Profit/Revenue


How do you calculate the Contribution margin ratio?

sales-variable cost= contribution


How do you find contribution margin percentage?

Formula for contribution margin ratio = Sales