Question

The sales revenue of one of the hotels was $900000. The gross profit was $315 000. Calculate the gross profit margin

Answer 1

The gross profit margin is calculated using the formula:

\[
\text{Gross Profit Margin} = \left( \frac{\text{Gross Profit}}{\text{Sales Revenue}} \right) \times 100
\]

Given:
- Sales Revenue = $900,000
- Gross Profit = $315,000

Substituting the values into the formula:

\[
\text{Gross Profit Margin} = \left( \frac{315,000}{900,000} \right) \times 100
\]

Calculating the fraction:

\[
\frac{315,000}{900,000} = 0.35
\]

Now, multiply by 100 to get the percentage:

\[
0.35 \times 100 = 35\%
\]

Thus, the gross profit margin is **35%**.