Answer to Question #240600 in Management for djdjd

Question

IBM reports that, for the years 2009 and 2008, the gross profit margins are 45.72% and 44.06% respectively. Both the net profit and the gross profit margins indicated stronger financial positions for IBM from 2008 until 2010. Which one of the following equations would IBM have used to calculate the gross profit margins?

Answer 1

Gross Profit Margin = (Total Revenue – Cost of Goods Sold)/Total Revenue x 100