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What is the Formula for Calculating Gross Profit Ratio ? - Book Keeping and Accountancy

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Question

What is the formula for calculating gross profit ratio ?

Solution

The gross profit percentage formula is calculated by subtracting cost of goods sold from total revenues and dividing the difference by total revenues. Usually a gross profit calculator would rephrase this equation and simply divide the total GP dollar amount we used above by the total revenues.

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Operating Profit Ratio
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2017-2018 (March)

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