ok today i have offically hit a wall… gross profit margin = gross profit/ cogs gross margin % = gross profit / sales. i am trying to better understand the diference… i am looking at this as a % is of the total so you want the gross margin % to be based off of sales… but why in the gross profit margin calculation you divide by cogs?
I think you need to reread the text as I don’t recognize your gross profit margin formula. Gross Profit = Sales - COGS Gross Profit Margin = Gross Profit / Sales Not sure where you got your first formula. Hope this helps.