Company's Financial Accounting
Calculation of gross margin for separate types of products with example
The key indicator of assessing the economic efficiency and profitability of a product or service is margin, which is the difference between the selling price and the cost price. For calculations, can be used the indicator of gross margin or operating profit. The calculation of this indicator is important both for a small enterprise and for large business. Assessment of Gross Profit Margin is especially useful if the company produces and sells several types of products. Thus, using a simple calculation, can be compared which products generate more income and determined the effectiveness of a particular group of goods. Based on the data received, the management of the company makes certain business decisions and as a result, for example, can:
- refuse to release and sell non-profitable products;
- review the prices;
- strengthen control over the cost of production;
- decide to introduce a new product into the assortment;
- increase sales volume.
Calculations must be done regularly, this will give a notion about current situation of the enterprise and will make it possible to prepare a forecast for subsequent periods.
Gross margin for separate types of products, free download template in Excel format
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| Name | File to download |
|---|---|
| Gross margin per product | DOWNLOAD FREE |
| Валовая маржа по продукту | СКАЧАТЬ БЕСПЛАТНО |
| Bruttokateprosentti tuotteen kohtaisesti | LATAA ILMAISEKSI |