A car worth php 1750000 is sold for php 21000000.what is the value of the gross margin with exact formula and solution

To calculate the gross margin, we need to use the following formula:

\[
\text{Gross Margin} = \frac{\text{Selling Price} - \text{Cost Price}}{\text{Selling Price}} \times 100
\]

Where:
- **Cost Price (C.P.)** = PHP 1,750,000
- **Selling Price (S.P.)** = PHP 21,000,000

### Step-by-step solution:

1. **Subtract the Cost Price from the Selling Price**:
   \[
   \text{Selling Price} - \text{Cost Price} = 21,000,000 - 1,750,000 = 19,250,000
   \]

2. **Divide the result by the Selling Price**:
   \[
   \frac{19,250,000}{21,000,000} = 0.91667
   \]

3. **Multiply by 100 to get the percentage**:
   \[
   0.91667 \times 100 = 91.67\%
   \]

### Final Answer:
The **gross margin** is **91.67%**.

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Would you like more details or further explanations? Here are some related questions:

1. How do you calculate the markup percentage?
2. What is the difference between gross margin and net margin?
3. How does gross margin affect the profitability of a business?
4. Can gross margin be negative?
5. How does gross margin influence pricing strategy?

**Tip:** Always double-check whether you're working with gross or net profit, as they have different formulas!

A car worth php 1750000 is sold for php 21000000. What is the value of the gross margin with exact formula and solution?

Learn how to calculate the gross margin for a car sold at PHP 21,000,000 with a cost price of PHP 1,750,000. This step-by-step solution explains how to apply the gross margin formula and calculate the percentage profit. Suitable for students in Grades 9-12.

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