Business FinancesQuestion 296 of 1605
A contractor sells a job for $200,000 with total job costs of $150,000. What is the gross profit MARGIN as a percentage of the selling price?
a.33.3%
b.25%
c.50%
d.75%
Explanation
Gross profit = $200,000 − $150,000 = $50,000. Gross margin = Gross Profit ÷ Selling Price = $50,000 ÷ $200,000 = 25%.
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