The gross profit is, therefore, $100,000 after subtracting its COGS from sales. The gross margin is 50% or ($200,000 - $100,000) ÷ $200,000.

Divide the gross profit by total revenues to determine the gross profit margin: $25,216 ÷ $151,800 = 16.61%. Most businesses have a gross profit margin that falls between 20% and 40%, but this ...

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