Gross Margin |
| In a micro context, it is the difference between the selling price of an item and the purchase or manufacturing cost, expressed as a percentage of the selling price. For example, if it costs a company œ6 to manufacture an item and the selling price is œ10, the gross margin is 40%. In corporate accounting, the gross margin of a business is its turnover, or gross income, less the cost of sales, divided by the turnover, also expressed as a percentage. |
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