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What is my gross profit (gross margin) percentage and is this reasonable for my type of business?

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Question added by Joe Akiki , Internal Auditor , Bassil Audit Firm
Date Posted: 2014/05/09
Joe Akiki
by Joe Akiki , Internal Auditor , Bassil Audit Firm

Gross profit is the difference between the value of the sales and the cost of sales. Understanding your gross profit is a really important building block for any small business owner, so spend some time with your

accountant familiarising yourself with this figure and what it means!

Gross Profit Percentage = Gross Profit ÷ Sales x100%

Increase your gross profit margin by increasing selling price or reducing cost of sales

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