What is gross profit margin?
Gross profit margin measures gross profit as a percentage of revenue.
How is gross profit margin calculated?
Gross profit margin equals gross profit divided by revenue, multiplied by 100.
Why is gross profit margin important?
It shows how much profit remains after covering production costs.
What does a high margin indicate?
It indicates efficient cost management and pricing.
How can businesses improve gross margin?
They improve it by reducing costs or increasing prices.