Mary buys 8 widgets for $40.00. She adds $1.00 in enhancements to each widget and sells them for $9.00 each. What is Mary's estimated gross profit margin?

Question

25%
33%
39%
44%
50%
67$

Answer 1

The profit is 8x9 - (40 + 8) = 72 - 48 = $24

The total cost is $48. The profit is 24/48 = __ % of the cost.

That is the gross margin.