Asked by JORDAN ESCOBAR on Jul 06, 2024
Verified
The gross margin percentage is computed by dividing sales by the gross margin.
Gross Margin Percentage
A financial metric that measures the difference between revenue and the cost of goods sold, divided by revenue, expressed as a percentage; it shows the proportion of money available to cover other expenses and profit.
- Understand the calculation and implications of profit margin ratios.
Verified Answer
ZK
Zybrea KnightJul 07, 2024
Final Answer :
False
Explanation :
The gross margin percentage is computed by dividing the gross profit by sales, not the other way around.
Learning Objectives
- Understand the calculation and implications of profit margin ratios.
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