calculate the gross profit margin for an item that cost the business $12 and sold for $40. gross profit =…

calculate the gross profit margin for an item that cost the business $12 and sold for $40. gross profit = $28 gross profit margin = ?%

calculate the gross profit margin for an item that cost the business $12 and sold for $40. gross profit = $28 gross profit margin = ?%

Answer

Answer:

70%

Explanation:

Step1: Recall the formula

Gross Profit Margin = $\frac{\text{Gross Profit}}{\text{Revenue}}\times100%$

Step2: Identify values

Gross Profit = $28$, Revenue = $40$

Step3: Calculate

Gross Profit Margin = $\frac{28}{40}\times100% = 0.7\times100%=70%$