calculate the gross profit margin for an item that cost the business $6 and sold for $8.\ngross profit =…
calculate the gross profit margin for an item that cost the business $6 and sold for $8.\ngross profit = $2\ngross profit margin = ?%
Answer
Answer:
25%
Explanation:
Step1: Recall the formula
Gross Profit Margin = $\frac{\text{Gross Profit}}{\text{Revenue}}\times100%$
Step2: Identify values
Gross Profit = $2$, Revenue = $8$
Step3: Calculate
Gross Profit Margin = $\frac{2}{8}\times100% = 25%$