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21 February, 22:32

Mary buys 8 widgets for $40.00 she adds $1.00 in enhancements to each widget and sells them for $9.00 each. What is Mary's estimated gross profit margin?

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  1. 22 February, 00:44
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    The gross profit margin is calculated using the following rule:

    gross profit margin = total profit / total sales

    Now, we need to get the values of total profit and total sale:

    total profit = 9*8 - (40+8) = 24$

    total sales = 9*8 = 72$

    Now, we will substitute in the above equation:

    gross profit margin = 24/72 = 1/3 = 0.3333334

    % = 0.33333334*100 = 33.3334%
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