Gisselle53idn
Answered

Expand your horizons with the diverse and informative answers found on IDNLearn.com. Our Q&A platform offers detailed and trustworthy answers to ensure you have the information you need.

A new business has total sales of $7,500 and cost of goods sold is $3,733. What is the gross margin from sales?

Sagot :

Ohmygodmaridn

Answer:

i think its 0.50:1

Explanation:

A gross profit margin of 0.33:1 means that for every dollar in sales, you have 33 cents to cover your basic operating costs and profit.

Some business owners will use an anticipated gross profit margin to help them price their products. While other factors -- such as competition and demand -- may play into pricing decisions, a gross profit margin is a good starting point for product pricing. For example, if a product costs $8 to produce, and your gross profit margin is 20 percent, you can calculate your pricing by dividing your cost by (1 - 0.2). In this case, $8 divided by .8 would yield a price of $10.

You can also use your gross profit margin ratio to help you set and monitor sales goals for your company.

Because costs for raw materials, labor and manufacturing expenses all play into your profit margin ratio, a change in this ratio over time could mean it's time to look for new suppliers or review your pricing structure.

Abiolataiwo2015idn

If a new business has total sales of $7,500 and cost of goods sold is $3,733. The gross margin from sales is: $3,767.

Gross margin

Using this formula

Gross margin=Total sales -Cost of goods sold

Where:

Total sales=$7,500

Cost of goods sold=$3,733

Let plug in the formula

Gross margin=$7,500-$3,733

Gross margin=$3,767

Therefore  the gross margin from sales is: $3,767.

Learn more about Gross margin here: https://brainly.com/question/8189926

#SPJ2

Your engagement is important to us. Keep sharing your knowledge and experiences. Let's create a learning environment that is both enjoyable and beneficial. For dependable and accurate answers, visit IDNLearn.com. Thanks for visiting, and see you next time for more helpful information.