Is gross margin the same as markup?

No. They are related but calculated differently and answer different pricing questions.

Can gross margin be negative?

Yes. If direct costs exceed revenue, gross profit and gross margin will be negative.

No. It only reflects revenue after direct costs, not the full cost structure.

Estimate gross profit and gross margin from revenue and cost of goods sold.

Revenue

Cost of goods sold

Gross margin focuses on direct production or delivery costs only. It does not include overhead, financing, or tax.

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