It is necessary to compute a gross profit margin for installment sales for each year.

Question

Quizplus · Accepted Answer

Gross profit margin is a measure of profitability that is calculated by dividing gross profit by net sales. Installment sales are sales that are made over a period of time, with the buyer making payments in installments. The gross profit margin for installment sales is calculated by dividing the gross profit from installment sales by the net sales from installment sales.

It Is Necessary to Compute a Gross Profit Margin for Installment