The Gross Profit Margin (GPM) is the
percentage of the sales price that is
profit.
Price – Cost
––––––––––– × 100 = GPM
Price
Example 1: What is the original cost
of an item selling for $200 with a
gross profit margin of 33%? What is
the profit?
You Press
200 M+ × 33 +/– MU
M–
MR
Example 2: What is the gross profit
margin of an item costing $100 that
sells for $150? What is the profit?
You Press
100 M+ – 150
MU
150 M–
MR
Note: Disregard the minus (–) signs
and read the gross profit margin as
33.3333333333% and the profit as
$50.
You can also easily calculate an
item's discounted selling price, an
8
You See
M 134
M 134
M 66.
You See
M –
33.3333333333
M 150
M –50.
Operation
item's final price with sales tax, and
the profit.
Example 3: What is the final price of
an item costing $70 with 5% sales
tax? How much is the sales tax?
You Press
70 × 5 MU
– 70 =
Example 4: What is the final price of
an item selling for $70 marked down
25%? How much is the discount?
You Press
70 × 25 +/– MU
– 70 =
Note: Disregard the minus (–) sign
and read the discount as $17.5.
Example 5: Calculate the selling
price of an item costing $100 with a
50% gross profit margin. What is the
profit?
You Press
100 ÷ 50 MU
– 100 =
Note: You cannot use the
tion when
F 0 2 3 4 A
You See
73.5
GT 3.5
You See
52.5
GT –17.5
You See
200
GT 100
func-
MU
is switched to
A
,