The formula to calculate the Gross Profit Margin given Gross Profit and Sales is:
\[ GPM = \frac{GP}{S} \times 100 \]
Where:
Gross Profit Margin is the total gross profit compared to your net sales.
Gross Profit is the profit a company makes after deducting the costs associated with making and selling its products.
Sales is the total sales for the period.
Let's assume the following values:
Using the formula:
\[ GPM = \frac{7500}{1000000} \times 100 \]
Evaluating:
\[ GPM = \frac{7500}{1000000} \times 100 \]
The Gross Profit Margin is approximately 0.75%.
| Gross Profit | Sales | Gross Profit Margin (%) |
|---|---|---|
| 5000 | 900000 | 0.555555555555556 |
| 5000 | 950000 | 0.526315789473684 |
| 5000 | 1000000 | 0.500000000000000 |
| 5000 | 1050000 | 0.476190476190476 |
| 5000 | 1100000 | 0.454545454545455 |
| 6000 | 900000 | 0.666666666666667 |
| 6000 | 950000 | 0.631578947368421 |
| 6000 | 1000000 | 0.600000000000000 |
| 6000 | 1050000 | 0.571428571428571 |
| 6000 | 1100000 | 0.545454545454546 |
| 7000 | 900000 | 0.777777777777778 |
| 7000 | 950000 | 0.736842105263158 |
| 7000 | 1000000 | 0.700000000000000 |
| 7000 | 1050000 | 0.666666666666667 |
| 7000 | 1100000 | 0.636363636363636 |
| 8000 | 900000 | 0.888888888888889 |
| 8000 | 950000 | 0.842105263157895 |
| 8000 | 1000000 | 0.800000000000000 |
| 8000 | 1050000 | 0.761904761904762 |
| 8000 | 1100000 | 0.727272727272727 |
| 9000 | 900000 | 1.000000000000000 |
| 9000 | 950000 | 0.947368421052632 |
| 9000 | 1000000 | 0.900000000000000 |
| 9000 | 1050000 | 0.857142857142857 |
| 9000 | 1100000 | 0.818181818181818 |
| 10000 | 900000 | 1.111111111111111 |
| 10000 | 950000 | 1.052631578947368 |
| 10000 | 1000000 | 1.000000000000000 |
| 10000 | 1050000 | 0.952380952380953 |
| 10000 | 1100000 | 0.909090909090909 |