mikkj86 Posts: 3, Reputation: 1 New Member #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 Posts: 3, Reputation: 1 New Member #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 Posts: 6,561, Reputation: 276 Uber Member #3 Mar 18, 2010, 09:17 PM

That's correct.

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