![]() ![]() If a retailer had net sales of $40,000 and its cost of goods sold was $24,000, the retailer had a gross margin of $16,000 or 40% of net sales ($16,000/$40,000).Ī manufacturer sells a product for $40 and its cost of goods sold (which consists of its manufacturing costs) is $28. The gross margin may be calculated for an individual product, a product line, or for the entire company.
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