Gross Profit Margin: Formula and What It Tells You
However, it has incurred $25,000 in expenses, for spare parts and materials, along with direct labor costs. As a result, the gross profit declared in the financial statement for Q1 is $34,000 ($60,000 – $1,000 – $25,000). A company can gauge how well it manages the product-specific aspect of its business by subtracting its cost […]
