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What is gross profit margin?

gross margin profit
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What is gross profit margin?

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A gross profit margin is what is left of sales after all the company’s costs are paid. A company earned $10.00 for an item, but its expenses are $5.00. The company’s gross profit margin is $5.00 or 50%.

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Companies calculate gross profit margin. 3d dollar sign image by lixai from Fotolia.com.

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