Question

a gift shop had a 42.5 % maintained markup. the shop did not incur any alterations or workroom costs and there were no cash discounts. net sales were $420,000. what was the gross margin percent?

Answer 1

Gross Margin is equal to Total Revenue x 100 is the equation to use when calculating gross margin as a percentage. The gross profit margin displays the revenue that remains after a business has paid all direct costs associated with producing a good or rendering a service.

What is the percentage of the gross margin telling you?

Net sales less the cost of products sold are known as gross margin. The gross margin is the profit produced before subtracting selling, general, and administrative (SG&A) costs.

What does a 50% gross margin entail?

When an item is produced for $100 and sold for $200, the price includes a 100% markup, or a 50% gross margin. Simply put, gross margin is the portion of the selling price.

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