Gross Margin is equal to:

Cost - Sales Revenue Profit before tax - Expenses Sales Revenue - Cost Sales Revenue - Profit before Tax

Sales Revenue - Cost

The correct answer is option (3) - Sales Revenue - Cost Gross Margin represents the percentage of sales revenue remaining after accounting for the direct costs of producing the goods or services sold. Therefore, it is calculated by subtracting the Cost of Goods Sold (COGS) from the Sales Revenue.