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The content of this article has been derived in whole or part from Farris, Paul W.; Neil T. Bendle; Phillip E. Pfeifer; David J. Reibstein
(2010). Marketing Metrics: The Definitive Guide to Measuring Marketing Performance. Upper Saddle River, New Jersey: Pearson Education, Inc. ISBN0137058292.. Permission has been received from the copyright holder to release this materialunder both the Creative Commons Attribution-ShareAlike 3.0 Unported license and the GNU Free Documentation License. You may use either or both licenses. Evidence of this has been confirmed and stored by VRT volunteers, under ticket number 2012021110008071. Permission applies only to such content from this book as is already present in the article on February 5, 2012. See item #34 in the OTRS records
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"Gross margin is the difference between revenue and cost of goods sold (COGS), divided by revenue."
The link "revenue" leads to "net income", which is revenue minus costs of goods. This is not the correct, because "net income" is already revenue minus costs of goods. It should be a link to "revenue" (i.e. gross revenue).
On the sited source investopedia.com the definition of Gross Margin is not the same: Gross Margin=(( Net sales-COGS)/Net Sales))×100 So, which one is true?
The other, maybe more common definition is this: Gross Margin = (gross profit/revenue)x100
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