Gross profit is calculated as net sales less the cost of goods sold. Gross profit margin (GPM = gross profit / sales) on the other hand, is considered a more useful metric for gross profit analysis.
A. Why is GPM a more useful metric than gross profit in dollars?
B. What factors most influence gross profit margin?

Question

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The Answer of Gross profit is calculated as net sales less the cost of goods sold. Gross profit margin (GPM = gross profit / sales) on the other hand, is considered a more useful metric for gross profit analysis.
A. Why is GPM a more useful metric than gross profit in dollars?
B. What factors most influence gross profit margin?

Gross Profit Is Calculated as Net Sales Less the Cost