calculate the gross profit margin for an item...
calculate the gross profit margin for an item that cost the business $20 and sold for $80. gross profit = $60 gross profit margin = ?%
Answer
# Answer:
75%
# Explanation:
## Step1: Recall the formula
Gross Profit Margin = $\frac{\text{Gross Profit}}{\text{Revenue}}\times100\%$
## Step2: Identify values
Gross Profit = $60$, Revenue = $80$
## Step3: Calculate
Gross Profit Margin = $\frac{60}{80}\times100\% = 0.75\times100\%=75\%$