Question

How to Express the profit as a ratio of the cost price??

Answer 1

Hey!! ☺

Here is your answer

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✔ This ratio indicates the percentage of each dollar is the percentage difference between a product's selling price and the profit.

▶ For example, if a product sells for $125 and costs $100, the gross margin is

($125 – $100) / $125 = 0.2(20%) = 20%.

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