Profitability Analysis Report
The Profitability Analysis Report gives you profit margins on each of your items according to your reported cost and retail.
To calculate profit margin, the report runs this formula:
(Unit Retail) - (Unit Cost) = (Profit)
(Profit) / (Unit Retail) = (Profit Margin)
(Profit) / (Unit Cost) = (Markup)
One of the benefits of running a Profitability Analysis, is that it shows a complete breakdown of profit margins, even if a product's cost changes.
As seen in the example above, if the cost of a product changes, multiple line items will be generated, showing the exact profit made on sales of products, according to their unit cost at the time of purchase.