calculate the gross profit margin for an item that cost the business $95 and sold for $125. gross profit =…
calculate the gross profit margin for an item that cost the business $95 and sold for $125. gross profit = $30 gross profit margin = ?%
Answer
Explanation:
Step1: Recall gross - profit - margin formula
The formula for gross profit margin is $\text{Gross Profit Margin}=\frac{\text{Gross Profit}}{\text{Revenue}}\times100%$.
Step2: Identify values
The gross profit is $30$ and the revenue (selling price) is $125$.
Step3: Calculate margin
$\text{Gross Profit Margin}=\frac{30}{125}\times 100%=\frac{30\times100}{125}% = 24%$
Answer:
$24$