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Yes. COGS is the difference between Sales and Gross Margin. If your gross margin is 40%, then your COGS is 60% (100% - 40%). So, if your Sales are 1,000 and you have a 40% Gross Margin, your COGS = 600 (1,000 x 60%) or (1,000 - 400).

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14y ago
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11y ago

Gross Margin is the remainder after COGS has been deducted from Sales:

Sales

- COGS

Gross Margin

So to calculate Sales, add COGS back to the Gross Margin.

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Q: How do you calculate sales using COGS and gross margin?
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How do you calculate gross profit margin using cogs and sales?

Gross Profit = Sales - Cost of goods sold Gross profit margin = gross profit / Sales


Calculate the break-even point?

Break-even point = Fixed cost / contribution margin ratio Contribution margin ratio = sales - variable cost / sales by using these equations break even point can be calculated


How do you calculate sales tax using gross sales?

If I understand your question correctly you know what the Gross Receipts are and need to calculate the sales tax that is included. If that is the case this is how to do it. Gross Receipts - Gross Receipts divided by (1+ Tax Rate) if your tax rate is 5% and your gross receipts including tax are $1,050.00, divide $1,050.00 by 1.05. The result is your net receipts without tax. $1000.00 . Then $1050.00 -$1000.00 = $50.00 the sales tax


What affects gross margin?

The Gross Margin, also known as the Gross Profit Margin, is an expression of the Gross Profit as a percentage of the Revenue. It is calculated using the following: Gross Profit Margin = Gross Profit/Revenue*100 Looking at the input variables of the equation, it is clear that the factors that would affect the Gross Profit Margin would be the Gross Profit and the Revenue. What affects Gross Profit and Revenue would be an endless topic of it's own.


How do you calculate breake even sales knowing only total sales and variable cost and fixed cost?

Formula for breakeven point = Fixed Cost / Contribution margin Contribution margin = Total Sales - variable cost SO using above mentioned formula break even sales can be found.


How do you calculate break even points using contribution margin?

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Are gross margin and contribution margin the same thing?

No, they're not the same thing. Gross Margin is revenue minus COGS (cost of goods sold). Contribution Margin is revenue minus variable costs (such as materials and labor that go into making the product). It shows you how much of each dollar of sales varies with the amount of sales, and thus, what percentage of each dollar of sales is left for fixed costs. This is the definition that I've understood. However, it's confusing even as I write it because the difference between them seems to imply that there are (or could be) variable costs below the gross profit line. Or maybe there are some fixed costs associated with costs of goods sold and that's why the distinction should be made above the gross profit line. If anyone has any contributions (no pun intended) that can clarify this, I would appreciate it. ---- Another way to distinguish between the two is by using these definitions. Gross Margin = Revenue - Full Absorption Cost*Contribution Margin = Revenue - Variable Cost *Full absorption cost being defined as the sum of the fixed and variable overhead, direct labor, and direct materials costs.


How would you define gross margin in context of a Restaurant?

The best way to define gross margin in the context of a restaurant is to say that it covers all of the income the restaurant makes minus all the outgo. These margins are figured using real expenses only and do not figure in deductions that the restaurant may qualify for.


Is gross sales the same as gross income?

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How do you calculate gross margin from cost of goods?

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