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Summary: Gross profit percentage is defined as the ratio between gross profit and total sales. Determine gross profit percentage by calculating the gross profit first with instructions from a certified public accountant in this free video on business and accounting terms.
Henry Gutter is a certified public accountant located in El Segundo, Calif. With more than 25 years of experience in finance and accounting, Gutter continues to practice with a diverse...read more
"In this clip, we'll define gross profit percentage. As we said earlier, the gross profit is the revenue minus the cost of sales. The growth profit percentage is that ratio between the gross profit and the total sales. For example, if we sell $100,000 worth of socks for $200,000 and earn a gross profit of $100,000, the gross profit percentage is 50%."
eHow Article: How to Define Gross Profit Percentage
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