Selling Price, Gross Margin & Mark-Up Determination
Gross margin percent is calculated as the profit margin (difference in the selling price of $2.54 and the total cost of $2.00) divided by the selling price. The formula for gross margin percent is: Gross Margin Percent = (Selling Price - Total Cost) ÷ Selling Price Gross Margin Percent = ($2.54 - $2.00) ÷ $2.54 Gross Margin Percent = $0.54 ... ................
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