calculate the gross profit margin for an item that cost the business $20 and sold for $80. gross profit =…

calculate the gross profit margin for an item that cost the business $20 and sold for $80. gross profit = $60 gross profit margin = ?%

calculate the gross profit margin for an item that cost the business $20 and sold for $80. gross profit = $60 gross profit margin = ?%

Answer

Answer:

75%

Explanation:

Step1: Recall the formula

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

Step2: Identify values

Gross Profit = $60$, Revenue = $80$

Step3: Calculate

Gross Profit Margin = $\frac{60}{80}\times100% = 0.75\times100%=75%$