Editing Gross margin (section)

====Converting between gross margin and markup (gross profit)====
Converting markup to gross margin
<math display="block">\text{gross margin} = \frac{\text{markup}}{1 + \text{markup}}</math>

Examples:
*Markup = 100% = 1 <math display="block"> \text{gross margin} = \frac{1}{1 + 1} = 0.5 = 50\%</math>
*Markup = 66.7% = 0.667 <math display="block"> \text{gross margin} = \frac{0.667}{1 + 0.667} = 0.4 = 40\%</math>

Converting gross margin to markup
<math display="block">\text{markup} = \frac{\text{gross margin}}{1 - \text{gross margin}}</math>

Examples:
*Gross margin = 50% = 0.5 <math display="block"> \text{markup} = \frac{0.5}{1 - 0.5} = 1 = 100\%</math>
*Gross margin = 40% = 0.4 <math display="block"> \text{markup} = \frac{0.4}{1 - 0.4} = 0.667 = 66.7\%</math>

'''Using gross margin to calculate selling price'''

Given the cost of an item, one can compute the selling price required to achieve a specific gross margin. For example, if your product costs $100 and the required gross margin is 40%, then
<math display="block">\text{Selling price}  = \frac{\$100} {1 - 40\%} = \frac{\$100} {0.6} = \$166.67</math>