Editor Gross Profit Margin Formula, Example, and Interpretation
This ratio is not a good comparison tool across different industries, because of the different financial structures and costs different industries use. Service companies, such as law firms, can use the cost of revenue (the total cost to achieve a sale) instead of the cost of goods sold (COGS). Imagine you run a small bakery, and in a month, you sold $10,000 worth of cakes, pastries, and bread. In particular, […]
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