Mathematical profit formula of senior one: profit = cost-selling price profit rate = profit/cost. The basic quantitative relationship of profit problem is: the profit of commodity = income-cost; Or the profit of goods = income * profit rate. Selling price-purchase price (cost) = profit profit/purchase price (cost) = profit margin Purchase price (cost) times (1+ profit margin) = selling price.

If the gross profit is not enough to compensate the circulation expenses and taxes, the enterprise will lose money. The percentage of gross profit in commodity sales revenue or operating income is called gross profit margin. Gross profit margin is generally divided into comprehensive gross profit margin, classified gross profit margin and single commodity gross profit margin. The gross profit margin of commodity sales directly reflects the price difference level of all categories and some commodities operated by enterprises, and is the basis for accounting whether the operating results and price setting of enterprises are reasonable.