what is gross profit margin?

In General Area - Asked by sowadi c. - Dec 4, 2008
Report Abuse
Answer this Question


David G.
Sarasota, FL

The gross profit is most often the result of the COGS (cost of goods sold) from the revenue...before the expenses (operating cost) are calculated.
For example: The store owner buys a pair of shoes at wholesales for $25 and retails (sells) the shoes for $55 in his store. The difference between the retail price and the cost of goods is $30...That is the Gross Profit.
When you then add up all the "operating expenses": rent, employees, electricity these items are deducted from the Gross Profit to determine the Net Profit or also known as the NOI (net operating income).

Dec 6, 2008
Report Abuse
Chris C.
New York, NY

Gross profit margin = Revenues minus COGS / Revenues.

Jan 15, 2009
Report Abuse

Welcome to Answers

LoopNet Answers is where the commercial real estate community shares what they know to help each other out. And it's all for free.

Ask a question to get advice from brokers, investors, professionals and local experts.

Answer questions to raise your visibility as a trusted advisor and build new relationships.

Ask a Question

Post Question