News for hackers. Stuff that matters.
Re:Starting a Bike Shop by mediaman on Thursday January 31, 2013 @09:33PM (#5148852)
Gross margin is the dollar profit divided by sell price. So, (sale price - purchase price)/(sale price).

You may be thinking of markup, which is the profit dollars as percentage of cost, and is often used in retail.

A 100% markup results in a 50% gross margin.

Re:Starting a Bike Shop by hessenwolf on Friday February 01, 2013 @08:48AM (#5150616)
Dollar profit is a bit misleading. Gross margin is the formula you give, but not taking into account operating costs.