The number you will get is the amount of product you Latest Mailing Database to sell to cover the cost of production. If you manage to sell more, you will make a profit. 6. Cost of sales Cost of Goods Sold (COGS) is the total amount a company spends on Latest Mailing Database and distributing all of its products during a specific period. It includes spending on materials, labor, natural resources, energy, fuel, etc. Cost of sales is calculated by adding the total cost of inventory at the beginning of the period to the total cost of all new purchases at a given time.
Then subtract the total cost of ending inventory. Cost of Latest Mailing Database sold = total cost of inventory at the beginning of the period + total cost of new purchases - total cost of inventory at the end of the period Once you Latest Mailing Database know your cost of sales over a year, you can effectively plan your expenses for the next year. Also, you need this metric to calculate your gross margin.
Gross Margin This business metric is important Latest Mailing Database it gives you an idea of how effective your business is in generating pure profit. To calculate your gross profit, simply subtract your COGS from your gross income for a given Latest Mailing Database . This way, you'll get absolute numbers in dollars (or whatever other currency you're using). This is the profit your business makes.
