calculate the gross profit margin for an item that cost the business $32 and sold for $40.\ngross profit =…
calculate the gross profit margin for an item that cost the business $32 and sold for $40.\ngross profit = $8\ngross profit margin = ?%
Answer
Explanation:
Step1: Recall the formula
Gross Profit Margin = $\frac{\text{Gross Profit}}{\text{Revenue}}\times100%$
Step2: Identify values
Gross Profit = $8$, Revenue = $40$
Step3: Calculate the margin
Gross Profit Margin = $\frac{8}{40}\times100%= 20%$
Answer:
20%