Estimate of his gross profit margin

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Tony works full-time as a computer-repair technician who makes on-site repairs for individuals and small businesses. He says his gross profit margin is 94% because last year his total revenues were $100,000 and his expenses were $6,000. “I’m actually doing better than Microsoft. They talk about gross profit margins of 80%” says Tony. What is wrong with Tony’s estimate of his gross profit margin?

Reference no: EM13964355

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