What is the formula for calculating the gross profit margin?
Practice Questions
1 question
Q1
What is the formula for calculating the gross profit margin?
(Sales - Cost of Goods Sold) / Sales
Net Income / Total Assets
Operating Income / Total Revenue
Total Revenue / Total Expenses
The gross profit margin is calculated by subtracting the cost of goods sold from sales and then dividing by sales, indicating the percentage of revenue that exceeds the cost of goods sold.
Questions & Step-by-step Solutions
1 item
Q
Q: What is the formula for calculating the gross profit margin?
Solution: The gross profit margin is calculated by subtracting the cost of goods sold from sales and then dividing by sales, indicating the percentage of revenue that exceeds the cost of goods sold.
