Exercises / Finance and business maths · 1 of 14
Gross margin per product
Gross margin is profit as a share of the price: (price − cost) ÷ price. Markup is profit as a share of the cost: (price − cost) ÷ cost. They are easy to mix up, and interviewers know it.
Your taskIn D2, work out the gross margin: price (B2) minus cost (C2), divided by the price. It will be copied down to D7.
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| Row | A | B | C | D |
|---|---|---|---|---|
| 1 | Product | Price | Cost | Margin |
| 2 | Espresso machine | $420.00 | $252.00 | |
| 3 | Grinder | $160.00 | $88.00 | |
| 4 | Milk frother | $45.00 | $18.00 | |
| 5 | Scale | $38.00 | $21.00 | |
| 6 | Kettle | $75.00 | $41.00 | |
| 7 | Tamper | $30.00 | $9.00 |