<Dd> To verify a margin (%): Cost as% of sales = 100%--Margin% </Dd> <P> "When considering multiple products with different revenues and costs, we can calculate overall margin (%) on either of two bases: Total revenue and total costs for all products, or the dollar - weighted average of the percentage margins of the different products ." </P> <P> How gross margin is used in sales </P> <P> Retailers can measure their profit by using two basic methods, markup and margin, both of which give a description of the gross profit . The markup expresses profit as a percentage of the retailer's cost for the product . The margin expresses profit as a percentage of the retailer's sales price for the product . These two methods give different percentages as results, but both percentages are valid descriptions of the retailer's profit . It is important to specify which method you are using when you refer to a retailer's profit as a percentage . </P>

What is the difference between selling price and variable cost per unit divided by selling price