calculate the gross profit margin for an item that cost the business $12 and sold for $15.\ngross profit =…
calculate the gross profit margin for an item that cost the business $12 and sold for $15.\ngross profit = $3\ngross profit margin = ?%
Answer
Explanation:
Step1: Recall the gross - profit - margin formula
The formula for gross profit margin is $\text{Gross Profit Margin}=\frac{\text{Gross Profit}}{\text{Revenue}}\times100%$.
Step2: Identify the values
The gross profit is $3$ and the revenue (selling price) is $15$.
Step3: Calculate the gross - profit margin
$\text{Gross Profit Margin}=\frac{3}{15}\times 100% = 20%$.
Answer:
$20$