Question

Formulas of margin

Answer 1

1. Gross Margin = (Revenue - Cost of Goods Sold) / Revenue

2. Net Margin = (Net Income / Revenue) x 100

3. Operating Margin = (Operating Income / Revenue) x 100

4. Contribution Margin = (Selling Price - Variable Costs) / Selling Price

5. Profit Margin = (Net Profit / Revenue) x 100

6. Gross Profit Margin = (Gross Profit / Revenue) x 100

7. EBITDA Margin = (EBITDA / Revenue) x 100

8. EBIT Margin = (EBIT / Revenue) x 100

9. Return on Sales (ROS) = (Net Income / Sales) x 100

10. Marginal Costing Margin = (Contribution / Sales) x 100