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how to calculate weighted average gross profit percentage. Repeat for each product sold by the company. A companys profit is calculated at three levels on its income statement starting with the most basic gross profit and building up to the most comprehensive net profit.
How To Calculate Weighted Mean And Weighted Average Youtube from www.youtube.com
Divide gross profit by net sales to calculate the gross profit margin percentage. Margin 100 revenue - costs revenue. Multiply the weight by each value.
This results in a gross margin percentage of 55 which is calculated as.
The following example will demonstrate how to use Excels SUMPRODUCT and SUM functions to calculate a weighted average. Once you have your numbers youll need to know how much each of them weighs or is worth. Determine the weight value of each number. Here is how the Gross Profit calculation can be explained with given input values - -800 200-1000.
