Definition: The monetary value of what a retailer made before taking out cost of goods Note: Discounts are subtracted out in this number, which can also be known as Net Revenue. Also includes returns in this number, does not include voided purchases Equation: sum(base price of unit - potential discount on the u…
Definition: Percent of profit from revenue sales. Note: Only calculated for products that have a cost associated with it. Equation: Total Profit/Total Revenue or Total Gross Margin/Total Revenue Example: Retailers can use Gross Margin Percent to better understand the relationship between profit and revenue w…