Gross margin is calculated with the formula
A) Revenue plus COGS
B) Gross Profit times COGS
C) Price plus Gross Profit
D) Revenue minus COGS
E) Revenue times profit

Question

Quizplus · Accepted Answer

Gross margin is calculated by subtracting the cost of goods sold (COGS) from the total revenue. This gives the gross profit, which when expressed as a percentage of revenue, is the gross margin.

Gross Margin Is Calculated with the Formula