calculate the gross profit margin for an item that cost the business $18 and sold for $50.\ngross profit =…

calculate the gross profit margin for an item that cost the business $18 and sold for $50.\ngross profit = $32\ngross profit margin = ?%

calculate the gross profit margin for an item that cost the business $18 and sold for $50.\ngross profit = $32\ngross profit margin = ?%

Answer

Explanation:

Step1: Recall the formula for gross - profit margin

The formula for gross - profit margin is $\text{Gross Profit Margin}=\frac{\text{Gross Profit}}{\text{Revenue}}\times100%$.

Step2: Identify the values of gross profit and revenue

The gross profit is given as $$32$, and the revenue (selling price) is $$50$.

Step3: Calculate the gross - profit margin

Substitute the values into the formula: $\text{Gross Profit Margin}=\frac{32}{50}\times100%$. First, $\frac{32}{50}=0.64$, and then $0.64\times100% = 64%$.

Answer:

$64%$