Gross profit margin
What Gross profit margin means in Business GCSE, as defined for AQA, Pearson Edexcel.
Definitions of Gross profit margin
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Reference: Pearson Edexcel
Calculated as (gross profit / sales revenue) × 100, showing the revenue retained after direct costs.
Calculated as (gross profit ÷ revenue) × 100, it shows trading efficiency before overheads.
Topics that use Gross profit margin
- Analysing the financial performance of a business (AQA GCSE)
- Business calculations (Pearson Edexcel GCSE)
Related terms
- Net profit margin
- Asset and liability classification
- Assets
- Average rate of return
- Average Rate of Return (ARR)
- Business decision making
- Calculating and comparing ratios and totals
- Cash Flow Forecast
Using Gross profit margin in the exam
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