calculate the gross profit margin for an item that cost the business $21 and sold for $50. gross profit =…
calculate the gross profit margin for an item that cost the business $21 and sold for $50. gross profit = $29 gross profit margin = ?%
Answer
Explanation:
Step1: Recall the formula
Gross Profit Margin = $\frac{\text{Gross Profit}}{\text{Revenue}}\times100%$
Step2: Identify values
Gross Profit = $29$, Revenue = $50$
Step3: Calculate margin
Gross Profit Margin = $\frac{29}{50}\times100%= 58%$
Answer:
58%