The gross profit margin is a measurement of a company's manufacturing and distribution efficiency during the production process. If G is the gross profit and T is the total revenue, both in dollars, then the gross profit margin M = M(G, T) is given by the formula M - 우 (a) Use functional notation to express the gross profit margin for a company that has a gross profit of $375,000 and a total revenue of $580,000. M * (b) Calculate the gross profit margin in part (a). The gross profit margin is often expressed as a percent. Give your answer as both a decimal and percent. (Round your decimal answer to two decimal places, and your percent to the nearest percent.) M = M = % (c) If the gross profit stays the same but total revenue increases, would the gross profit margin increase or decrease? O The gross profit margin will increase. The gross profit margin will decrease.

The gross profit margin is a measurement of a company's manufacturing and distribution efficiency during the production process. If G is the gross profit and T is the total revenue, both in dollars, then the gross profit margin M = M(G, T) is given by the formula M - 우 (a) Use functional notation to express the gross profit margin for a company that has a gross profit of $375,000 and a total revenue of $580,000. M * (b) Calculate the gross profit margin in part (a). The gross profit margin is often expressed as a percent. Give your answer as both a decimal and percent. (Round your decimal answer to two decimal places, and your percent to the nearest percent.) M = M = % (c) If the gross profit stays the same but total revenue increases, would the gross profit margin increase or decrease? O The gross profit margin will increase. The gross profit margin will decrease.

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter9: Applications Of Cost Theory

Section: Chapter Questions

Problem 1.3CE

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It costs a baker a fixed cost of $420 and variable cost of $2.10 per cupcake.A cupcake is sold for $4.90 each. (iv) Write an algebraic expression representing the revenue R as a function of the number of cupcakes x sold.
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