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2 answers

On sales would be more, but I don't see how you could do it.
Say you buy something for 100 and mark it up 25% you would sell it for 125 if you marked it up from sales you would be marking up a larger number but how would you compute the sales amount without marking it up from cost?

2007-11-13 01:58:11 · answer #1 · answered by shipwreck 7 · 0 1

They measure the same thing except the the equations tell you different things.

% of Cost is the same as Gross Profit Margin
(revenue - cost) / revenue

% of Sales is ROI
(revenue - cost) / cost

Example:
Cost: $900.00
Revenue: $1,200.00
Net Rev: $300 (revenue - cost)

% of Sales (% Margin)> > 25%
% Cost (ROI)> > > > > > 33%

2007-11-13 03:36:48 · answer #2 · answered by strayinma 4 · 0 0

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