Chapter 1.1, Problem 6E

Gross Profit Margin The gross profit margin is a measurement of a company's manufacturing and distribution efficiency during the production process. If G is the gross profit and T is the total revenue, both in dollars, then the gross profit margin $M=M\left(G,T\right)$ is given by the formula

$M=\frac{G}{T}$

a. Use functional notation to express the gross profit margin for a company that has a gross profit of $335, 000 and a total revenue of $540, 000.

b. Calculate the gross profit margin in part a. The gross profit margin is often expressed as a percent. Give your answer as both a decimal and a percent.

c. If the gross profit stays the same but total revenue increases, would the gross profit margin increase or decrease?