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Total Gross Margin

Department:

Parts Department

Total Gross Margin

%

Calculation

(Total sales - Cost of goods sold) / Total sales.

DESCRIPTION

The percentage of sales revenue remaining after deducting the cost of goods sold.

Purpose

To assess the profitability of the company's core activities.

Interpretation

Did you get it right

Optimal:
A higher percentage indicates efficient cost management.
Alert:
An excessively high margin could indicate pricing strategy issues.
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06/15/2024 04:19:19 am