#Accounting MCQ What will be the Gross Profit Margin if the - TopicsExpress

#Accounting MCQ What will be the Gross Profit Margin if the Markup on goods is 20%? A) 20% B) 16.67% C) 25% Markup is on Cost of Goods. Lets say the Cost of Goods is $100, then the Markup of 20% will make the Selling Price of Goods at $120. Gross Profit Margin is taken with respect to the Selling Price & not the Cost of Goods sold. Therefore the GP Margin can be calculated as $20 / $120 x 100 = ...... . where $20 is the Profit (markup on cost) & $120 is the Selling Price. In Short Markup is added to the Cost of Goods & Profit Margin is calculated with respect to Selling Price.... :)

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