_________ gives the retailer a measure of how much profit it is making on merchandise sales without considering the expense associated with operating the store.

Question

Quizplus · Accepted Answer

Gross margin measures the difference between the revenue generated from sales and the cost of goods sold. It does not take into account the operational expenses, such as rent, utilities, and salaries, which are factored in when calculating net profit. Therefore, gross margin gives the retailer a measure of profitability solely based on merchandise sales.

_________ Gives the Retailer a Measure of How Much Profit