Gross Margin
Gross margin is an ambiguous phrase that expresses the relationship between gross profit and sales revenue. The ambiguity arises because it can be expressed in absolute terms:
Gross Margin = Revenue - Cost of Goods Sold
Or as the ratio of gross profit to sales revenue, usually in the form of a percentage:
Gross Margin percentage = 100 * (Revenue - Cost of Goods Sold) / Revenue
In everyday speech the word ‘percentage’ is sometimes omitted and this can create confusion… @