Financial reports for the Parts Department show Gross Profit on each individual category of Parts sales as well as the overall total Parts Sales.
This page is explaining the total Departmental Gross Profit within all of the individual categories are included. (Please also see Parts Sales Mix.)
Example:
A) Total Gross Profit = R187,836 B) Parts Sales = R695,688 C) Gross Profit % = 27% (A ÷ B X 100)
Discussion:
When you express your Gross Profit as a percentage it is much easier to identify and control the direction of your department. An easy way of identifying your trading strategy is to plot a simple graph that can be updated on a monthly basis. The question that you must have the answer to is where are Rebates and Bonus accounted for?