What Does A Gross Profit Margin Of 20% Mean? [Solved]

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What Does A Gross Profit Margin Of 20% Mean? [Solved]

The ratio indicates the percentage of each dollar of revenue that the company retains as gross profit. For example, if the ratio is calculated to be 20%, that means for every dollar of revenue generated, $0.20 is retained while $0.80 is attributed to the cost of goods sold.7 May 2022

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