costs and revenues

Question 1

how do you work out the gross profit margin?

Answer 1

gross profit / revenue x 100 = gross profit margin (%)
gross profit = revenue - cost of ingredients/material
revenue = income

Question 2

if you make a fish pie for six people, the cost of all the ingredients is £35
you decide to sell each portion for £9.99
what is your gross profit margin?

Answer 2

revenue = £9.99 x 6 = £59.94
gross profit = £59.94 - £35 = £24.94
£24.94 / £59.94 x 100 = 41.6%
gross profit margin = 41.6%