Selling Price$80.00
Gross Profit$30.00
Gross Margin37.5%
Revenue multiplier1.60Γ
π How is this calculated?
Selling Price = Cost Γ (1 + Markup% / 100). Gross Profit = Price β Cost. Gross Margin = Profit / Price Γ 100. Note: A 60% markup gives a 37.5% margin β markup and margin are different!
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