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What is the Formula for Calculating Gross Profit Ratio ? - Book Keeping and Accountancy

Question

What is the formula for calculating gross profit ratio ?

Solution

The gross profit percentage formula is calculated by subtracting cost of goods sold from total revenues and dividing the difference by total revenues. Usually a gross profit calculator would rephrase this equation and simply divide the total GP dollar amount we used above by the total revenues.

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APPEARS IN

 2017-2018 (March) (with solutions)
Question 1.1.5 | 1.00 mark
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What is the Formula for Calculating Gross Profit Ratio ? Concept: Operating Profit Ratio.
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