Gross Margin vs Gross Profit | What is the Difference?

[@dirtydan6098]

What’s my problem- gross margin for the sales price of $8.88 and COGS of $4.25 is 52% not 47.8%? (8.88-4.25) / 8.88

[@BadassBusinessOwners]

You are correct. GM% should be (Sales - COGS)/Sales . The COGS % is 47.8 and GM is 52.1%. Ugg, accidental transposing. thanks for pointing this out

[@dirtydan6098]

@@BadassBusinessOwners gotta delete the video. this made me go crazy last night as I was studying

[@Stormslow1]

In 4:44 in gross margin you have 100-45=65 when it's supposed to be 100-45=55

[@MacAngLyn]

You should remake thos video with the correct formula. Your videos are so good! You're a great teacher!!! I really love learning from you.

[@BadassBusinessOwners]

Ah, thanks! Glad they are helpful! I'll keep updating them an improving them. :-). Tammy

[@BadassBusinessOwners]

*_Remember: Gross Profit & Gross Margin are indicators of what money is left for expenses & profits! - Tammy_*

[@Stormslow1]

In 4:44 in gross margin you have100-45=65 it is supposed to be 100-45=55

[@BadassBusinessOwners]

Hey there. Yep, if I recall I did do that backwards. :-(. Fixed in future stuff tho. I wish they let us go back and tweak. - Tammy

[@Stormslow1]

Thanks for the videos i gust love them ❤❤❤❤❤❤❤❤❤❤❤❤❤❤❤❤❤❤❤❤❤❤❤❤

[@BadassBusinessOwners]

Glad you like them and are finding them helpful. :-). - Tammy

[@kholoudkhaledgamalel-din6637]

What if you had these micro categories in the P&L statements : - difference from eliminations - gains from disposal of PP&E - losses fr disposal of PPE - offset segments (tech.) To which macro categories would these belong ? COG or Expense ?

[@shangpacleb4738]

thanks for the videos

[@BadassBusinessOwners]

Glad they help! :-). Tammy

[@saraht583]

What is standard margin?

[@BadassBusinessOwners]

Standard margin typically includes your operational costs. Some folks will have you bundle all costs and expenses together.

[@Amadeadraws]

Hello, I got confused. I thought Gross Profit Margin= (Sales- COGS)/ Sales right? Your formula says that its Gross Profit Margin=COGS/ Sales? Sorry can you please explain what you meant, and why to me that seems wrong.

[@BadassBusinessOwners]

@@Amadeadraws You are correct. The COGS % is 47.8 and GM is 52.1%. Ugg, accidental transposing. thanks for pointing this out. GM% should be (Sales - COGS)/Sales

[@kholoudkhaledgamalel-din6637]

100%-45% = 65 % 😮 not 55?????

[@BadassBusinessOwners]

Good morning. It is 55%. 45 + 55 = 100. 65 + 45 = 110. I have other videos where I messed up, LOL, so I always welcome when folks find stuff. :-). - tammy

[@graybradley3578]

This is not correct