Question

Gross Profit margin = 49.82%

is this gross profit enough for the company to cover indirect costs?

what information is needed please?

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Answer 1

Indirect costs are administrative expenses, selling and marketing expenses. These are deducted from gross profit. Interest expense and tax expenses are also deducted to arrive at net income. If the net profit margin is positive, gross profit is sufficient to cover indirect costs.

Only profit margin (Net income/Sales) is required to answer this question. If it is positive, it is sufficient to cover the indirect costs.