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%.