Blended Margin Calculator

Formula

The formula to calculate the Blended Margin (BM) is:

\[ \text{BM} = \frac{\text{AS} - \text{AC}}{\text{AS}} \times 100 \]

Where:

Blended Margin (BM): The percentage margin calculated by subtracting the average cost of goods sold from the average sales revenue, dividing by the average sales revenue, and multiplying by 100.
Average Sales Revenue (AS): The average revenue from all products.
Average COGS (AC): The average cost of goods sold for all products.

Let's say the average sales revenue (AS) is $1000 and the average COGS (AC) is $600. Using the formula:

\[ \text{BM} = \frac{1000 - 600}{1000} \times 100 = 40\% \]

So, the blended margin is 40%.