gross profit margin
What gross profit margin means in Business A-Level, as defined for AQA.
Definitions of gross profit margin
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Reference: AQA
A profitability margin using profit after cost of sales, reflecting pricing strategy and direct production costs.
Gross profit over revenue, stated as a per cent of sales.
Topics that use gross profit margin
- Analysing financial performance (AQA A-Level)
- Annex: quantitative skills in business (AQA A-Level)
Related terms
- break-even output
- contribution per unit
- margin of safety
- qualitative factors
- analysis
- average rate of return
- averages
- axes and scales
Using gross profit margin in the exam
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