How do I figure out the gross profit percentage on new items in my store? Is there an equation or something?

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How do I figure out the gross profit percentage on new items in my store? Is there an equation or something?

I guess Sr. Mary Gratia was right about algebra...

2006-10-06 23:02:00 · 3 answers · asked by ? 2 in Business & Finance ➔ Small Business

3 answers

Revenue/cost = gross profit in decimal. Multiply by 100 % to get percentage.

2006-10-06 23:11:40 · answer #1 · answered by L96vette 5 · 1⤊ 0⤋

Typically, you should have a set mark up (mu) for all stock items. Between 2.5 and 3.25 works to cover shipping and overhead. So...your cost times your mu will give you gross profit.

2006-10-06 23:13:00 · answer #2 · answered by Anonymous · 0⤊ 0⤋

turnover - cost of sales = gross profit

2006-10-06 23:06:48 · answer #3 · answered by #5 1 · 0⤊ 1⤋