% calculation

[floricita]

Hi just wondering if the % calculation changes if one of the numbers is negative?

I have revenue of 1 product which is losing -11(*,000).

And it's costing13(,*000).

The GM % is showing me a massive + number, where as in reality it has a rubbish GM (GM/revenue)
Any ideas?

[floricita]

I,m guessing that maybe it should show a 0% figure if for whatever reason (credits or something) has made revenue a negative number? Rather than a - %???

[shg]

You mean you have a product that costs $13,000 to manufacture, and you're selling it for $2,000, losing $11,000 on each?

The gross margin is 1 - cost/price = 1 - 13/2 = -550%

[floricita]

There is a product where costs assigned to the product outweight the revenue. I don't know why this is at the moment, maybe some manipulation of the cost allocation on the cost lines.

[shg]

Gross margin excludes allocated costs; cost means cost of goods sold.