1. What is MAS?

MAS (Margin After Sales) represents the difference between Sales and Cost of Goods Sold (COGS). It's a key financial metric that shows the direct profitability of goods and services sold before accounting for operating expenses.

2. How Does the Calculator Work?

The calculator uses the simple MAS equation:

Where:

• \( Sales \) — Total revenue from goods and services sold (in SGD)
• \( COGS \) — Direct costs attributable to the production of goods sold (in SGD)

Explanation: The equation calculates the gross profit margin by subtracting the direct costs from total sales revenue.

3. Importance of MAS Calculation

Details: MAS is crucial for understanding the basic profitability of products and services. It helps businesses determine pricing strategies, evaluate product line profitability, and make decisions about cost control.

4. Using the Calculator

Tips: Enter sales and COGS amounts in SGD. Both values must be positive numbers. The calculator will compute the difference between them.

5. Frequently Asked Questions (FAQ)

Q1: How is MAS different from gross profit?
A: MAS is essentially the same as gross profit - both represent sales minus cost of goods sold. The terms are often used interchangeably.

Q2: What's a good MAS percentage?
A: A good MAS percentage varies by industry. Generally, 50-70% is excellent for retail, while 20-30% might be typical for manufacturing.

Q3: Does MAS include operating expenses?
A: No, MAS only considers sales revenue and direct costs of goods sold. Operating expenses are deducted after calculating MAS.

Q4: How often should MAS be calculated?
A: Businesses should track MAS regularly - monthly at minimum, though some calculate it weekly or even daily for key products.

Q5: Can MAS be negative?
A: Yes, if COGS exceeds sales revenue, MAS will be negative, indicating the business is losing money on each sale.