25 from each watch with a profit percentage of 125. There are two key ways for you to improve your gross margin. Gross profit margin Gross profit Revenue x100 The gross profit percentage formula shown above is simple if you already have an accurate value for the gross profit of the business.
Gross profit total revenue x 100.
Gross Profit Percentage is calculated using the formula given below Gross Profit Percentage Total Sales Cost of Sale Total Sales 100 Gross Profit Percentage 60000 37500 60000 100 Gross Profit Percentage 3750. It can be said that the shopkeeper made a profit of Rs. The net profit margin is net profit divided by revenue or net income divided by net sales. Net sales are equal to total gross sales less returns inwards and discount allowed.