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this is going to be a really quick video showing you how you can quickly calculate gross margin for a given product and Excel what Ive got here is a list of revenues or a range of years for a given product Im calling it product a and then what the total costs of goods sold were for this product in each given year here and so Ive added in a separate column this column D labeled GM or gross margin and what Im going to do is type in a formula that calculates what the gross margin was for product a and each of these years its going to fluctuate as youre going to see a little bit each year as a cost of goods sold on fluctuated a little bit as well so lets take a look at what this calculation needs to be so Im going to enter equals first open parenthesis and then Im going to tell Excel to basically subtract the cost of goods sold from the revenue for this year for 1994 so were going to go so b4 minus c4 again that subtracting cost of goods sold in 1984 from the revenue that we had