calculate the gross profit margin for an item that cost the business $12 and sold for $40.\ngross profit =…
calculate the gross profit margin for an item that cost the business $12 and sold for $40.\ngross profit = $28\ngross profit margin = ?%
Answer
Explanation:
Step1: Recall the formula
Gross - Profit Margin=$\frac{\text{Gross Profit}}{\text{Revenue}}\times100%$
Step2: Identify values
Gross Profit = 28, Revenue = 40
Step3: Calculate the margin
Gross - Profit Margin=$\frac{28}{40}\times100% = 70%$
Answer:
70%