In the technical article for tackling performance evaluation, they were using jungle co as an example. They had the solutions for the change in gross margin by product line but I cant understand the solution for there. Like, for household goods, were did they get 15 596 in the numerator. Can you please explain?
Ask the Tutor ACCA PM
Jungle Co. technical articles
5y ago#1The gross profit is the revenue less the cost of sales.
So for household goods, the gross profit is 38,990 - 23,394 = $15,596.
Therefore the gross margin = 15,596/38,990 = 40%
Sign in to reply to this topic.