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Calculates the Expected Gross Margin for Grocery Stores

Gross_Margin.Rd

This function calculates the estimated portion of the total estimated revenue represented as gross margin for a hypothetical grocery store in a user-selected location based off of a user-selected percentage parameter. If not specified by the user, this percentage defaults to the industry average provided by Bizminer and Vertical IQ.

Usage

Gross_Margin(Total_Estimated_Revenue, Percentage = 0.2446)

Arguments

Total_Estimated_Revenue

Total estimated revenue based on market size/location.

Percentage

Percentage of total estimated revenue expected as gross margin selected via user input (defaults to the average percentage taken from Bizminer and Vertical IQ).

Value

The output returns the estimated dollar amount for gross margin for a hypothetical grocery store in a given location.

Details

This function employs a default average percentage value from the financial analysis and market research firms Bizminer and Vertical IQ and is based upon calculations originally formulated by FFED ISU Extension and Outreach.

Author

Aaron Null