Asked by Pierre Chew Seng Yaw on Jun 18, 2024
Verified
The gross margin percentage is computed by dividing the gross margin by net income before interest and taxes.
Gross Margin Percentage
The portion of sales revenue that exceeds the cost of goods sold, expressed as a percentage, indicating the financial health of product sales.
- Acquire knowledge on the calculation and consequences of profit margin ratios.
Verified Answer
BR
Brittany ReneeJun 19, 2024
Final Answer :
False
Explanation :
The gross margin percentage is computed by dividing the gross margin by total revenue, not net income before interest and taxes.
Learning Objectives
- Acquire knowledge on the calculation and consequences of profit margin ratios.
Related questions
The Formula for the Net Profit Margin Percentage Is: Net ...
The Gross Margin Percentage Is Computed by Dividing Sales by ...
Profit Margin Reflects the Percent of Net Income in Each ...
Younis Corporation's Income Statement Appears Below: the Company's Net ...
Mormino Corporation's Income Statement Appears Below: the Company's Gross ...