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!