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What is "gross margin"

Longman Dictionary of Contemporary English
gross margin
noun
EXAMPLES FROM CORPUS
▪ A gross margin of $ 62, 500 is anticipated on $ 250, 000 in sales.
▪ By contrast, the gross margin on an alternative remedy is typically 30 percent, Toth said.
▪ The gross margin was 20. 7 percent in the fourth quarter.
▪ These machines have a gross margin of 50 percent.
▪ Two years ago, an average gross margin might have been £200 / acre, he points out.
WordNet
gross margin

n. the ratio gross profits divided by net sales [syn: margin of profit, profit margin]

Wikipedia
Gross margin

Gross margin is the difference between revenue and cost of goods sold, or COGS, divided by revenue, expressed as a percentage. Generally, it is calculated as the selling price of an item, less the cost of goods sold (production or acquisition costs, essentially). Gross Margin is often used interchangeably with Gross Profit, but the terms are different. When speaking about a dollar amount, it is technically correct to use the term Gross Profit; when referring to a percentage or ratio, it is correct to use Gross Margin. In other words, Gross Margin is a % value, while Gross Profit is a $ value.

Gross Margin is a type of profit margin, specifically a form of profit divided by net revenue: for example, gross (profit) margin; operating (profit) margin; net (profit) margin; etc.

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Usage examples of "gross margin".

We have all seen businesses that do a lot of volume but are left with no profit or with a loss, but by keeping your gross margin solid and tightly controlling your expenses below gross margin, you’.