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Difference Between Gross Margin and Contribution Margin: Learning Objectives: What is the difference between gross margin and contribution margin? Gross Margin is the Gross Profit as a percentage of Net…
Gross profit ratio (GP ratio) is the ratio of gross profit to net sales expressed as a percentage. It expresses the relationship between gross profit and sales. Components: The basic components for the calculation of gross profit ratio are gross profit and net sales.Net sales means that sales minus…
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