gross margin on trade-in

If a company has a new product that sells for $10 with a 50% gross margin, but takes in it’s old products “in-trade up” for $3 credit towards the new product, what is the new gross margin?


20%?? not sure. 2/10

This would be my guess, is there any additional info on what’s done with the trade in? daj224 Wrote: ------------------------------------------------------- > 20%?? > > not sure. 2/10

wouldn’t gross margin be before returns? is it net margin you’re looking for?

I would treat it as if you gave discount and usually you use net revenue…