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    mikkj86's Avatar
    mikkj86 Posts: 3, Reputation: 1
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    #1

    Mar 17, 2010, 09:54 PM
    an item that cost $90 is sold for $120. The gross profit ratio for this item is?
    an item that cost $90 is sold for $120... the gross profit ratio for this item is?

    I understand that GP = revenue - cost of goods sold
    mikkj86's Avatar
    mikkj86 Posts: 3, Reputation: 1
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    #2

    Mar 17, 2010, 09:56 PM

    I estimated it to be 25% because revenue ($120) - cost of goods sold is $30 /$120 = 25%
    morgaine300's Avatar
    morgaine300 Posts: 6,561, Reputation: 276
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    #3

    Mar 18, 2010, 09:17 PM

    That's correct.
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