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Gross profit percentage = Gross profit/Sales revenue*100%
Higher gross profit percetage often means good sign for the company. A company should keep enough gross profit percentage in its business.
Because gross profit = revenue – cost of sales, this means you should control the revenue and cost of sales at the same time. Such as: selling prices, sales mix, pruchase cost, production cost and inventory.
To improve the gross profit percentage involve a series of controlling measure.
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