The formulas used in the calculations are:
\[ \text{profit} = \text{revenue} - \text{costs} \]
\[ \text{gross margin} = 100 \times \frac{\text{profit}}{\text{revenue}} \]
or alternatively:
\[ \text{gross margin} = 100 \times \frac{\text{revenue} - \text{costs}}{\text{revenue}} \]
To calculate revenue from profit and margin:
\[ \text{revenue} = 100 \times \frac{\text{profit}}{\text{margin}} \]
To calculate costs from revenue and margin:
\[ \text{costs} = \text{revenue} - \frac{\text{margin} \times \text{revenue}}{100} \]
This calculator computes the gross margin percentage based on the input values of revenue and costs. It also shows how to calculate profit, revenue, and costs using the given formulas.
Let's assume the following:
Calculate the profit:
\[ \text{profit} = 10,000 - 7,000 = 3,000 \]
Calculate the gross margin percentage:
\[ \text{gross margin} = 100 \times \frac{3,000}{10,000} = 30\% \]
Therefore, the gross margin percentage is 30%.