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.
<h3>What is the percentage of the gross margin telling you?</h3>
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.
<h3>What does a 50% gross margin entail?</h3>
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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