Part 2
Gross profit margin
Your gross profit margin is your gross profit as a percentage of turnover. For example, if your turnover is $2 million and your cost of sales is $600,000, you’ve made a gross profit of $1.4 million. It’s easy to turn this into a percentage: 1,400,000 ÷ 2,000,000 x 100 = a gross margin of 70%.
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