Calculation for Gross Profit and Gross Profit %

Summary:

Calculation for Gross Profit and Gross Profit %

How is gross profit calculated on the Merchandise Analysis and Inventory Analysis reports?

Solution:

Gross Profit Percent (also called Gross Margin) shows the percentage of sale dollars that is profit. The formula for Gross Profit % = (Sales - Cost / Sales) * 100.

Sales - Cost is the Gross Profit dollar amount on the reports.