Need some advice please people ....
I have seen various ways of calculating gross margin and some giving different results.
I work in the manufacturing industry and was wondering if someone could advise on the correct way to calculate gross margin.
Also what is the difference between gross margin and markup?
Say for example I have a product which cost 85 to produce and wanted a gross margin of 40%, how would I calculate the selling price? How would mark up fit in here?
Any thoughts greatly appreciated.
Many thanks,
NP.