Thread Rating:
  • 0 Vote(s) - 0 Average
  • 1
  • 2
  • 3
  • 4
  • 5
Solved: Profit % Error
07-24-2013, 10:29 AM, (This post was last modified: 07-24-2013, 10:32 AM by MacPhotoBiker.)
#5
RE: Profit % Error
If I were you, I really wouldn´t re-code webERP. Margin and Gross Profit are directly linked, you just need to modify the value. The formula to calculate the Gross Margin from a given Markup is this:

Gross Margin = Markup / (1 + Markup)

In your example:

Gross Margin = 0.3 / (1 + 0.3)
Gross Margin = 0.3 / 1.3
Gross Margin = 23.08 %

In other words, Markup 30 % = Gross Margin 23.08 %.

For some more detailed information, have a look here:
http://en.wikipedia.org/wiki/Gross_margin

Close to the end of the article they explain the conversion between Markup and Gross Margin.
MacPhotoBiker
Just Core Business Inc.
[url]http://www.justcorebusiness.com[/url]
Reply


Messages In This Thread
Solved: Profit % Error - by turpsy - 07-19-2013, 07:46 PM
RE: Profit % Error - by MacPhotoBiker - 07-21-2013, 04:38 AM
RE: Profit % Error - by phil - 07-22-2013, 08:19 AM
RE: Profit % Error - by turpsy - 07-23-2013, 10:13 PM
RE: Profit % Error - by MacPhotoBiker - 07-24-2013, 10:29 AM
RE: Profit % Error - by turpsy - 07-26-2013, 06:25 PM
RE: Profit % Error - by MacPhotoBiker - 07-28-2013, 06:45 AM

Forum Jump:


Users browsing this thread: 2 Guest(s)