Gross Profit Margin

A measure of the proportion of revenue that is left after deducting all costs directly related to the sales. For each $100 in sales, the business retains $83.96 after deducting the cost of sales. The gross profit serves as the source for paying operating expenses. The gross profit margin can be further improved by improving price, volume, and cost of sales management. For this period, the gross profit margin % is above the required target of 35%.