Gross profit margin
What Gross profit margin means in Economics B A-Level, as defined for Pearson Edexcel.
Definitions of Gross profit margin
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Reference: Pearson Edexcel
A profitability ratio measuring the proportion of revenue left over after deducting the direct costs of producing goods or services, calculated as (Gross Profit / Revenue) x 100%.
Gross profit divided by revenue multiplied by 100, indicating efficiency in producing goods.
Topics that use Gross profit margin
- Appendix 4: Accounting ratios (Pearson Edexcel A-Level)
- Profit and loss (Pearson Edexcel A-Level)
Related terms
- Operating profit margin
- Financial performance
- Market entry
- Market exit
- Operating profit
- Profit for the year margin
- Profitability
- Profitability ratios
Using Gross profit margin in the exam
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