Distinguish between gross profit as a percentage of cost and gross profit as a percentage of the sales price.
Gross profit as a percentage of sales indicates that the markup is based on selling price rather than cost; for this reason, the gross profit as a percentage of the selling price will always be lower than if based on cost.
1 comments:
Gross profit on sales statistic is useful to estimate gross profits for an expected level of sales.
Seven Wastes Model - Taiichi Ohno - Toyota Production System
If the answers is incorrect or not given, you can answer the above question in the comment box. If the answers is incorrect or not given, you can answer the above question in the comment box.