Calculation of Gross Profit Margin
Gross Profit Margin is defined as the percentage of revenue remaining once the variable costs of executing the project have been paid.
Knowing that the variable costs in a project are €762,398 and that the price agreed with the client is €1,239,852, calculate the gross profit margin in MS Excelusing the following formula:
Gross Profit Margin in % = (Price – Costs)/ Price