ABC Company is a producer of machines. The price of a machine is 1 million yen per unit. Variable cost to produce one machine is 500,000 yen (=0.5 million yen). In addition, the fixed cost to produce machines amounts to 200 million yen. Calculate gross profit margin for the following 2 cases. Answers should be in %.

Gross profit = Sales Cost of goods sold, Gross profit margin = Gross profitSales

(1) When the company produces and sells 760 machines, what is the gross profit margin?

%

(2) When the company produces and sells 780 machines, what is the gross profit margin?

%