Gizmo is a sugar brand and promotes itself with its sustainability. With the new sustainable packaging method, pack material per ton cost is expected to increase by 20%. Also, a localization project about the product is expected to decrease raw material per ton cost by 12%.

What is the new gross profit margin of the product?

Net Sales-Total Costs=Gross Profit

Gross Profit/Net Sales=Gross Profit Margin

Answers:

a) 39.6

b) 33.4

c) 35.3

d) 37.5