How do you calculate gross margin with the following info sa

How do you calculate gross margin with the following info: sales revenue, cost of goods sold, cost of goods manufactured, and selling and admin expense? Just need help putting it together.

Solution

Gross margin can be calculated by using the following formula

Sales revenue minus cost of goods sold

Gross Margin = Sales revenue - cost of good sold

Gross margin is the margin before considering selling and administrative expenses, only cost of the goods which are sold are taken into account for deducting from the sales revenue