Question

Bonus: Gross margin is

the amount of money available to the business after all costs and expenses have been paid.
the difference between the selling price and the product costs.
all expenses of operating a business that are associated with a product.
a reduction from the original selling price.

Answer 1

2. Gross margin is the difference between the selling price and the product costs. Gross margin is a measure of profitability that represents the amount of money a business makes after deducting the direct costs associated with producing and selling its products or services from its revenue. It is calculated by subtracting the cost of goods sold (COGS) from the revenue generated by sales. The resulting figure represents the amount of money that is available to cover other operating expenses and to generate profit.

Step-by-step explanation: