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?
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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%
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