product margin is req ??

This query is : Open

SRIDHAR. K (Querist)
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28 December 2009 Sir,

please clarify the below problem.

cost price 0.070 and selling price .800
Gross profit margin is 91.25%

product margin 0.070 - .800 =0.730
margin = 73%

Gross profit is ok.
product margin also we need to calculate?
my manager shows this format.
is it correct? pls. explain.
Awaiting for your valuable reply.
Reg.
Sridhar K.

CA Tilak Raj Sharma

CA Tilak Raj Sharma (Expert)
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28 December 2009 91.25% is your product margin not the GP. 73% is incorrect.

For GP you also need to add direct cost in the cost price.

SRIDHAR. K

SRIDHAR. K (Querist)
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28 December 2009 Thank you sir,

also please let me know

cost price 0.070 and selling price .800

what is this
cp 0.070 - sp.800 =0.730 = 73% ??

any calculation is there like this, how to say this.

REg.
Sridhar K

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