Cost of sales
Opening stock
Add: Purchases
Less: Closing stock
GROSS PROFIT
We should calculate the profit on sales
To calculate the cost of goods you have to substract the gross profit from total sales.
IF cost of goods is available and margin is also provided then sales can be calculated as follows: Sales = Cost of goods / margin of sales
Cost of sales = opening stock + purchases-closing stock Cost of sales = opening stock + purchases-closing stock
Revenue less Cost of Sales (or Cost of Goods Sold).
sales-variable cost= contribution
Gross profit calculation Gross profit = Revenue - Cost of sales
Fixed cost = total cost / sale volume
27.63
Formula for contribution margin ratio = Sales – Variable cost / Sales
VAPCO = sales-variable cost/total employee cost.
dfs