b) = 313,586 - 261,322 / 313,586 = 17% GM (Gross Margin)
The difference between a Gross Margin and a Percentage Increase can be seen in the above description and as identified below taking the number 1000 as an example.
e.g. 1000 / 0.8 will provide a 20% Gross Margin = 1250
Using the gross margin pricing method, you would set the sales price from 1000 (cost) to 1250 to achieve a 20% pre-tax profit. The 1250 is calculated as follows: 1000 is divided by 80% e.g. (100% minus 20% overhead = 80%).
e.g. 1000 + 20% adds a Percentage Increase or Mark Up of 20% = 1200
Manufacturers, Retailers and Distributors have operated utilising the Gross Margin method for decades to identify a mark up against a cost or indeed show the profit an organisation/company may make.
Gross Margin and Mark Up도 참고하자.