If a retailer has a 25 percent gross-margin percentage,how much will be generated in gross-margin dollars for each $100 of sales?
A) $25.00
B) $75.00
C) $2.50
D) $4.50
E) $7.50

Question

Quizplus · Accepted Answer

To calculate the gross-margin dollars for each $100 of sales, we need to multiply the gross-margin percentage (25%) by the sales amount ($100).

Gross-margin dollars = Gross-margin percentage x Sales amount
Gross-margin dollars = 0.25 x $100
Gross-margin dollars = $25.00

Therefore, for each $100 of sales, the retailer will generate $25.00 in gross-margin dollars.

If a Retailer Has a 25 Percent Gross-Margin Percentage,how Much