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|
Gross Profit (GP) / Stock Value Calculation
(a) Get your 100%
Actual Sales GP without stock value
Condition A without stock turnover, buy
one sell one for once in a month.
|
|
Product |
Product |
|
Total |
|
|
A |
B |
|
|
|
Sales |
50,000 |
50,000 |
|
100,000 |
|
Cost |
(30,000) |
(35,000) |
|
(
65,000) |
|
Gross Profit |
20,000 |
15,000 |
|
35,000 |
|
|
|
|
|
|
|
Profit Margin % |
40% |
30% |
|
|
|
Markup % |
67% |
43% |
|
|
|
|
|
|
|
|
|
GP on Overall Sales |
20% |
15% |
|
35% |
|
|
|
|
|
|
Condition B with stock turnover, buying many
different times for 2 types of product within a month.
|
|
|
|
|
|
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|
Product |
Product |
|
Total |
|
|
A |
B |
|
|
|
* Stock Turnover * |
2 times |
5 times |
|
|
|
|
|
|
|
|
|
Sales |
100,000 |
250,000 |
|
350,000 |
|
Cost |
(60,000) |
(175,000) |
|
(235,000) |
|
Gross Profit |
40,000 |
75,000 |
|
115,000 |
|
|
|
|
|
|
|
Profit Margin % |
40% |
30% |
Same as condition A |
|
|
Markup % |
67% |
43% |
Same as condition A |
|
|
|
|
|
|
|
|
GP on Overall Sales |
11% |
21% |
Not same as above 33% |
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|
(b) Get Your 100%
Actual Stock Value to tally with Sales GP
|
|
Product A |
|
Product B |
||
|
Sales |
|
100,000 |
|
|
250,000 |
|
Opening Stock |
0 |
|
|
0 |
|
|
Purchase |
90,000 |
|
|
210,000 |
|
|
Closing Stock |
(30,000) |
(60,000) |
|
(35,000) |
(175,000) |
|
|
|
40,000 |
|
|
75,000 |
|
|
|
|
|
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|
* Closing Stock is the extra stock
that is not sold, in cost value, during the year.
* Therefore the stock value
must tally with the actual sales GP.