calculate the gross profit margin for an item...
calculate the gross profit margin for an item that cost the business $12 and sold for $40. gross profit = $28 gross profit margin = ?%
Answer
# Answer:
70%
# 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
Gross Profit Margin = $\frac{28}{40}\times100\% = 0.7\times100\%=70\%$