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ELEN [110]
3 years ago
5

Mary buys 8 widgets for $40.00 she adds $1.00 in enhancements to each widget and sells them for $9.00 each. What is Mary's estim

ated gross profit margin?
Mathematics
1 answer:
Maslowich3 years ago
5 0
The gross profit margin is calculated using the following rule:
gross profit margin = total profit / total sales

Now, we need to get the values of total profit and total sale:
total profit = <span>9*8-(40+8)=24$
total sales = 9*8 = 72$

Now, we will substitute in the above equation:
gross profit margin = 24/72 = 1/3 = 0.3333334
% = 0.33333334*100 = 33.3334%</span>
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